FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose you sell a fixed asset for $116,000 when its book value is $136,000. If your company's marginal tax rate is 21 percent, what will

image text in transcribed

Suppose you sell a fixed asset for $116,000 when its book value is $136,000. If your company's marginal tax rate is 21 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)? (Enter your answer as a whole number.) Answer is complete but not entirely correct. ATCE $ 123,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essential Personal Finance A Practical Guide For Students

Essential Personal Finance A Practical Guide For Students

Authors: Lien Luu, Jonquil Lowe, Jason Butler, Tony Byrne

1st Edition

1138692956, 978-1138692954

More Books

Students also viewed these Finance questions

Question

★★★★★
On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $980,000 in cash and other consideration. At the acquisition date, Smashing...

Answered: 1 week ago

Question

★★★★★
Describe common sources of debt financing entrepreneurial firms use.

Answered: 1 week ago

Question

★★★★★
=+On April 1, 2010, Ryan Barnes established Coyote Realty. Ryan completed the following transactions during the month of April: a. Opened a business bank account with a deposit of $25,000 from...

Answered: 1 week ago

Question

★★★★★
Why is some trade credit called free while other credit is called costly? If a firm buys on terms of 2/10, net 30, pays at the end of the 30th day, and typically shows $300,000 of accounts payable on...

Answered: 1 week ago

Question

★★★★★
If you put up $45,000 today in exchange for a 6.4 percent, 15 -year annuity, what will the annual cash flow be? 3 4 Input area: (Use cells A6 to B8 from the given information to complete this...

Answered: 1 week ago

Question

★★★★★
Machines that have the following costs are under consideration for a new manufacturing process. Compute the Equivalent Annual Worth with an interest rate of 8%, compounded semiannually. The machine...

Answered: 1 week ago

Question

★★★★★
When we communicate using posture, eye contact, tone of voice, and volume, we are delivering a(n). message. encoded O nonverbal verbal ineffective

Answered: 1 week ago

Question

★★★★★
Assume that you are an analyst who uses the CAPM to evaluate stocks. There is a firm that has ROE of 25%, a beta of 1.12, the expected return on the market is 15%, the risk-free rate is 5%, and the...

Answered: 1 week ago

Question

★★★★★
The most significant difference between an owner representation agreement and a buyer representation agreement is the client. the commission amount. agency law applications. contract law applications.

Answered: 1 week ago

Question

★★★★★
The assembler checks the pointer type used with the ADDR operator against the pointer type declared in the PROC directive. For example, it prevents a pointer to DWORD from being passed to a procedure...

Answered: 1 week ago

Question

★★★★★
Budget Office Systems uses a perpetual inventory system. The adjusted trial balance of Budget Office Systems at March 31, 2025, follows: View the adjusted trial balance. Prepare Budget Office...

Answered: 1 week ago

Question

★★★★★
Technology. Access a videotape or webcast of a recently delivered speech on a business-related subject that is of interest to you. The library at your school is a good resource for videotaped...

Answered: 1 week ago

Question

★★★★★
Read the paragraph in Exercise 4 three times. Each time, vary your posture so you are (a) standing, head low, shoulders curved forward; (b) seated, almost reclining, with legs extended and crossed at...

Answered: 1 week ago

Question

★★★★★
Discuss the role an emcee plays in the success of an event. (Objective 7)

Answered: 1 week ago

Previous Question Next Question