1) Carmen Company has an asset that cost $14,000 and currently has accumulated depreciation of $8,000. Suppose the firm sold the asset for $5,500 and is subject to a 30% income tax rate. The net after-tax cash flow of the disposal is:

Multiple Choice

$6,600.

$8,350.

$5,500.

$5,650.

None of the answers is correct.

2) Marshall Welding Company has two service departments (Cafeteria and Human Resources) and two production departments (Machining and Assembly). The number of employees in each department follows.

Cafeteria	20
Human Resources	30
Machining	100
Assembly	150

Marshall Welding uses the step-down method of cost allocation and allocates cost on the basis of employees. Human Resources cost amounts to $1,200,000, and the department provides more service to the firm than Cafeteria. How much Human Resources cost would be allocated to Machining? (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.)

Multiple Choice

$0.

$428,572.

$444,444.

$480,000.

None of the answers is correct.