Karen Corp has an asset they would like to sell. The asset has an original cost of $170,000 and accumulated depreciation of $109,000. The asset would be sold for $50,000 cash. Karen's tax rate is 40%. Calculate the after-tax cash inflow from the sale of this asset. a. $45,600 b. $54,400 c. $39,000 d. $43,400 e. $50,000 f. $30,000 g. $65,400 h. None of the above

Karen Corp has an asset they would like to sell. The asset has an original cost of $170,000 and accumulated depreciation of $109,000. The asset would be sold for $50,000 cash. Karen's tax rate is 40%. Calculate the after-tax cash inflow from the sale of this asset. a. $45,600 b. $54,400 c. $39,000 d. $43,400 e. $50,000 f. $30,000 g. $65,400 h. None of the above

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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20. Karen Corp has an asset they would like to sell. The asset has an original cost of $170,000 and accumulated depreciation of $109,000. The asset would be sold for $50,000 cash. Karen's tax rate is 40%. Calculate the after-tax cash inflow from the sale of this asset. a. $45,600 b. $54,400 c. $39,000 d. $43,400 e. $50,000 f. $30,000 g. $65,400 h. None of the above
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