Suppose You Sell a Fixed Asset for $112,000 When Its

question 53

Multiple Choice

Suppose you sell a fixed asset for $112,000 when its book value is $112,000. If your company's marginal tax rate is 39 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)$0
• B)$68,320
• C)$112,000
• D)$34,720

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Definitions:

Nonrestrictive Clauses

Clauses that provide additional information which is not essential to the meaning of the sentence and are usually set off by commas.

Restrictive Clauses

Subordinate clauses which serve to precisely define or limit the meaning of a noun in a sentence and are essential to its meaning.

Noun Clauses

A dependent clause that serves the role of a noun in a sentence.

Nonrestrictive

Used to describe modifiers, especially clauses, that provide additional information without limiting or defining the subject.