Please provide solution this general accounting question Hartwell Equipment Ltd. sold a capital asset for $180,000.The asset had a book value of $120,000, and the applicabletax rate is 35%.What is the after-tax cash flow that results from the saleof this capital asset?A) $162,000B) $180,000C) $159,000D) $132,000

Step 1: Define After-Tax Cash Flow from Sale of a Capital AssetThe After-Tax Cash Flow from the Sale…

Answered: Hartwell Equipment Ltd. sold a capital…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hartwell Equipment Ltd. sold a capital asset for $180,000. The asset had a book value of $120,000, and the applicable tax rate is 35%. What is the after-tax cash flow that results from the sale of this capital asset? A) $162,000 B) $180,000 C) $159,000 D) $132,000