5. A company purchased a commercial office for $210,000 ($150,000 for building and $60,000 for land) on June 1st, 2010 and sold it on May 30th, 2013 for $240,000 ($145,000 for building and $95,000 for land). Their gains tax rate was 34%. How much gains taxes did they owe?

(a) $15,235 (b) $21,141 (c) $15,540 (d) $14,014

6. Which one of the following statements about cash flow analysis is true?

(a) If a project has negative net incomes in all years over the project duration, then the net present value of its cash flows must be negative.

(b) Either tax depreciation or book depreciation methods can be used in cash flow analysis. (

c) If loan interest is 10% compounded annually, average tax rate is 20%, then the effective debt financing interest rate is 2%.

(d) Accounts receivable is an example of working capital investment.

Above are two multiple choice questions and answers (a) through (d). please tell me which answer is correct