CFIN -STUDENT EDITION-ACCESS >CUSTOM<
CFIN -STUDENT EDITION-ACCESS >CUSTOM<
6th Edition
ISBN: 9780357752951
Author: BESLEY
Publisher: CENGAGE C
bartleby

Videos

Question
Book Icon
Chapter 10, Problem 10PROB
Summary Introduction

Profit or loss is the difference of the sale value of asset and book value when the asset is sold.

Calculate the tax on profit or loss as follows:

Tax on profit or (loss)=(Sale valueBook value)×Tax rate

After tax cash flows are the cash flows remaining after payment of tax.

After tax net cash flow=(Sale valueProfit(loss))

TEC is selling its assets with book value of $6,000 for $4,000. Tax rate is 35%.

Blurred answer
Students have asked these similar questions
What are the six sources of data collection and please help to explain the qualitative data collection methods. What is the thematic analysis? How to anticipated themes in a research proposal?
Explain in detail the principle of Compounding of interest and why is it so important in Finance.
What is the bond quote for a $1,000 face value bond with an 8 percent coupon rate (paid semiannually) and a required return of 7.5 percent if the bond is 6.48574, 8.47148, 10.519, and 14.87875 years from maturity?
Knowledge Booster
Background pattern image
Finance
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Text book image
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
How to (Legally) Never Pay Taxes Again; Author: Next Level Life;https://www.youtube.com/watch?v=q63F1pBrUHA;License: Standard Youtube License