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

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
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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
Transcribed Image Text: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
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