Eyring Industries Has a Truck Purchased Seven Years Ago at a Cost

question 24

Multiple Choice

Eyring Industries has a truck purchased seven years ago at a cost of $6,000. At the time of purchase, the ultimate salvage value was estimated at $500, but salvage value was ignored in depreciation deductions. The truck is now fully depreciated. Assuming a tax rate of 40%, if the truck is sold for $500, the after-tax cash inflow for capital budgeting purposes will be:

• A) $500
• B) $300
• C) $200
• D) $100

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Definitions:

Assimilate

The process of taking in and fully understanding information or ideas, or the integration of people, ideas, or culture into a wider society or culture.

Emotional Bonds

The deep connections formed between individuals, characterized by feelings of affection, love, and trust.

Artificial Mothers

Experimental apparatuses used in animal behavior studies to simulate the care-giving behaviors of real mothers.

Body Contact

Physical touching or closeness between individuals, which can foster emotional bonding, communicate nonverbally, and promote comfort and security.