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Carmen Company has an asset that cost $7,000 and currently has accumulated depreciation of $4,000. Suppose the firm sold the asset for $2,700 and is
Carmen Company has an asset that cost $7,000 and currently has accumulated depreciation of $4,000. Suppose the firm sold the asset for $2,700 and is subject to a 30% income tax rate. The net after-tax cash flow of the disposal is: Multiple Choice $2,790 $3,300 None of the answers is correct. $4,210. $2,700.
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