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

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

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

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Please give solution for this accounting question

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

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