Suppose you sell a fixed asset for $118,000 when its book value is $138,000. If your company's marginal tax rate is 39 percent, what will be the effect on the cash flows of this sale?
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Suppose you sell a fixed asset...accounting questions
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- Suppose you sell a fixed asset for $126,000 when it's book value is $157,000. If your company's marginal tax rate is 35%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?Suppose you sell a fixed asset for $212,000 when its book value is $112,000. If your company’s marginal tax rate is 30 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?Suppose you sell a fixed asset for $110,000 when its book value is $130,000. If your company's marginal tax rate is 21 percent, what will be the effect on cash flows of this sale (i.e., what wilIl be the after-tax cash flow of this sale)? (Enter your answer as a whole number.)
- Suppose you sell a fixed asset for $10,000 when its book value is $2,000. If your company's marginal tax rate is 21 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)? I don't understandWhat could be the solution to the attached?i am confused with this Question please solve this one
- Suppose you sell a fixed asset for $99,000 when its book value is $75,000. If your company's marginal tax rate is 39 percent, what is the gain or loss on the sale of the asset? Multiple Choice ___ $24,000 ___ $11,600 ___ $14,640 ___ $10,300You have a depreciation expense of $478,000 and a tax rate of 35%. What is your depreciation tax shield? The depreciation tax shield will be $ (Round to the nearest dollar.)With a 28% marginal tax rate, would a tax free yield of 7% or taxable yeild of 9.5% give you a better return on your savings? why?