Given the Following Details, What Is the Difference in Seller

question 16

Multiple Choice

Given the following details, what is the difference in seller net proceeds between the asset sale and the stock sale?

Details:
Corporate tax rate: 38%
Capital gains rate: 20%
Stock Sale:
Purchase price: $4,000.0m
Stock basis: $1,000.0m
Asset Sale:
Purchase price: $4,000.0m
Asset basis: $1,000.0m

• A)$1,520.0m
• B)$912.0m
• C)$372.0m
• D)$518.0m

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Definitions:

X-axis

The horizontal axis in a coordinate plane, typically used as a reference line for measuring distances along the horizontal direction.

Coordinate System

A system for specifying the precise location of points in a plane or space using numbers, typically represented by axes.

Points

Specific locations in space defined by coordinates within a given context, such as on a graph.

Line Segments

A part of a line that is bounded by two distinct end points, and contains every point on the line between its endpoints.