Suppose You Sell a Fixed Asset for $90,000 When Its

question 108

Multiple Choice

Suppose you sell a fixed asset for $90,000 when its book value is $95,000. If your company's marginal tax rate is 40 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)$3,000
• B)$5,000
• C)$92,000
• D)$95,000

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Definitions:

Alcohol-Related Disorders

Medical conditions stemming from excessive or inappropriate alcohol consumption, including dependence, abuse, and physical harm.

Anxiety Disorders

A collection of psychological disorders marked by intense experiences of fear and anxiety.

Drug Treatments

Medical interventions that involve the administration of medication to address or manage specific health conditions or diseases.

Metabolized

The process by which substances are transformed within the body, often referring to the breakdown of drugs or nutrients into components that can be used or excreted.