Suppose You Sell a Fixed Asset for $75,000 When Its

question 78

Multiple Choice

Suppose you sell a fixed asset for $75,000 when its book value is $80,000. If your company's marginal tax rate is 35 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale) ?

• A)$5,000
• B)$48,750
• C)$76,750
• D)$80,000

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Definitions:

Stono Rebellion

was a slave uprising in 1739 in South Carolina, one of the largest and most significant slave rebellions in the colonial United States.

Slavery

A system in which individuals are owned by others, deprived of personal freedom, and compelled to perform labor or services without compensation.

British America

Territories in the Americas that were part of the British Empire before gaining independence or being transferred to other countries.