National Geographic Is Replacing an Old Printing Press with a New

question 9

Multiple Choice

National Geographic is replacing an old printing press with a new one. The old press is being sold for $350,000 and it has a net book value of $75,000. Assume that National Geographic is in the 40% income tax bracket. How much will National Geographic pay in income taxes from the sale?

• A) $140,000
• B) $45,000
• C) $110,000
• D) $87,010

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Definitions:

Remarriage

The act of marrying again after one's marriage has ended through divorce or widowhood, indicating the start of a new marital relationship.

Divorced

The status of having legally dissolved one's marriage, thereby ending the marital relationship and its legal responsibilities and duties.

Remarriage rates

The statistical measure of how often individuals who have been divorced or widowed enter into subsequent marriages.

Stepfamily

A household in which two adults who are biological or adoptive parents (heterosexual, gay, or lesbian) with a child from a previous relationship marry or cohabit.