A firm disposes of assets with book value $2.0 million. The assets actually sell for $1.0 million. If the corporate tax rate is 30%,

a. The tax paid on the sale of the assets is zero.

b. The tax paid on the sale of the assets is $0.3 million.

c. The tax paid on the sale of the assets is $2.1 million.

d. The firm can set $0.3 million against corporate tax in its Income Statement.