Carnes Company received $14,000 cash from the sale of a machine that had a $9,000 book value. If the company is subject to a 30% income tax rate, the net cash flow to use in a discounted-cash-flow analysis would be: A. $3,500. B. $6,500. C. $12,500. D. $14,000. E. $15,500.

Carnes Company received $14,000 cash from the sale of a machine that had a $9,000 book value. If the company is subject to a 30% income tax rate, the net cash flow to use in a discounted-cash-flow analysis would be: A. $3,500. B. $6,500. C. $12,500. D. $14,000. E. $15,500.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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Please true answer this question general accounting

Carnes Company received $14,000 cash from the sale of
a machine that had a $9,000 book value. If the company
is subject to a 30% income tax rate, the net cash flow to
use in a discounted-cash-flow analysis would be:
A. $3,500.
B. $6,500.
C. $12,500.
D. $14,000.
E. $15,500.

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