EBK CFIN
6th Edition
ISBN: 9781337671743
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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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:
After tax cash flows are the cash flows remaining after payment of tax.
TEC is selling its assets with book value of $6,000 for $4,000. Tax rate is 35%.
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