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24. What is your profit on the following timber sale, after taxes? Sale revenue = 1,000 MBF at $250/MBF = $250,000 Sale expense = 8% of sale revenue Adjusted basis before sale = $1,000,000 Timber volume before sale = 10,000 MBF Marginal tax rate on capital gains income = 28% a. $208,000 b. $198,000 c. $193,600 d. $154,880

24. What is your profit on the following timber sale, after taxes? Sale revenue = 1,000 MBF at $250/MBF = $250,000 Sale expense = 8% of sale revenue Adjusted basis before sale = $1,000,000 Timber volume before sale = 10,000 MBF Marginal tax rate on capital gains income = 28% a. $208,000 b. $198,000 c. $193,600 d. $154,880

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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24. What is your profit on the following timber sale, after taxes? Sale revenue = 1,000 MBF at $250/MBF = $250,000 Sale expense = 8% of sale revenue Adjusted basis before sale = $1,000,000 Timber volume before sale = 10,000 MBF Marginal tax rate on capital gains income = 28% a. $208,000 b. $198,000 c. $193,600 d. $154,880
Transcribed Image Text:24. What is your profit on the following timber sale, after taxes? Sale revenue = 1,000 MBF at $250/MBF = $250,000 Sale expense = 8% of sale revenue Adjusted basis before sale = $1,000,000 Timber volume before sale = 10,000 MBF Marginal tax rate on capital gains income = 28% a. $208,000 b. $198,000 c. $193,600 d. $154,880
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