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A company sells a fixed asset for $85,000 when its book value is $100,000. The company's marginal tax rate is 28%. What is the after-tax cash flow from this sale?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

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A company sells a fixed asset for $85,000 when its book value
is $100,000. The company's marginal tax rate is 28%. What is
the after-tax cash flow from this sale?

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