James Company Has an Asset That Cost $5,000 and Currently

question 99

Multiple Choice

James Company has an asset that cost $5,000 and currently has accumulated depreciation of $2,000. Suppose the firm sold the asset for $2,500 and is subject to a 30% income tax rate.
The net after-tax cash flow of the disposal is:

• A) $2,100.
• B) $2,350.
• C) $2,500.
• D) $2,650.
• E) None of the other answers are correct.

---

Definitions:

Psychodynamic Model

A psychological theory that emphasizes unconscious psychological processes (e.g., desires, thoughts, feelings) and contends that childhood experiences are crucial in shaping adult personality.

Displacement

The event that occurs when short-term memory is filled to capacity and each new, incoming item pushes out an existing item, which is then forgotten.

Phobic Object

A specific object or situation that invokes an intense, irrational fear in an individual, often leading to avoidance behaviors.

Biopsychosocial

A model or approach that attributes complex phenomena or issues to biological, psychological, and social factors.