Question
Suppose you sell a fixed asset for $95,000 when its book value is $90,000. If your company's marginal tax rate is 30%, what will be
Suppose you sell a fixed asset for $95,000 when its book value is $90,000. If your company's marginal tax rate is 30%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?
| $3500 | ||
| $93500 | ||
| $88500 | ||
| $92500 | ||
| $95500 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Organisational Change Audit
Authors: Ralph Houston
1st Edition
1907766014, 978-1907766015
