The Fortive Corporation Disposes a Capital Asset with an Original

question 67

Multiple Choice

The Fortive Corporation disposes a capital asset with an original cost of $180,000 and accumulated depreciation of $111,000 for $56,000.Alpha betas tax rate is 40%.Calculate the after-tax cash inflow from the disposal of the capital asset.

• A) $5,200
• B) ($5,200)
• C) $61,200
• D) $69,000

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Definitions:

Confidence Intervals

A range of values, derived from sample statistics, that is believed to contain the true population parameter with a certain level of confidence.

Unknown Parameters

Quantities in a statistical model that are not known a priori but are estimated from data.

P-values

The probability of observing a statistic as extreme as, or more extreme than, the statistic observed under the assumption that the null hypothesis is true.

Two-sided

Pertaining to hypothesis tests that consider deviations in both directions away from a specified null hypothesis.