i am confused with this Question please solve this one Suppose you sell a fixed asset for $112,000when its book value is $129,000. If yourcompany's marginal tax rate is 33%, what willbe the effect on the cash flows of this sale (i.e.what will be the after-tax cash flow of thissale)?A) $117,610B) $11,390C) $129,000D) $17,000

Step 1: Definition of Asset Disposal:Asset disposal occurs when the company decides to sell its…

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...

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Suppose you sell a fixed asset for $112,000 when its book value is $129,000. If your company's marginal tax rate is 33%, what will be the effect on the cash flows of this sale (i.e. what will be the after-tax cash flow of this sale)? A) $117,610 B) $11,390 C) $129,000 D) $17,000