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Phoenix [80]
3 years ago
9

Suppose you sell a fixed asset for $112,000 when its book value is $112,000. If your company's marginal tax rate is 39 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)?
Business
1 answer:
Dmitriy789 [7]3 years ago
8 0

Answer:

The after tax cash flow will be $112,000.

Explanation:

The market value of the fixed asset is given at $112,000.

The book value of the same asset is $112,000.

The marginal tax rate is 39%.

The after tax cash flow will be

= Book\ value\ +\ (Market\ value\ -\ book\ value)\ \times\ (1\ -\ t)

= \$ 112,000\ +\  (\$ 112,000\ -\ \$ 112,000 )\ \times\ (1\ -\ 0.39)

= \$ 112,000\ +\ (0\ \times\ 0.61)

= $112,000

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Answer:

Letter b is correct. Misappropriate the incoming check related to returned goods and deposit the check in a bank account other than the company's.

Explanation:

A pay-and-return scheme is a scheme where an employee intentionally defrays a payment amount from a vendor, increasing that expense and reimbursing the excess amount of that payment. It can also be performed on a dual payment scheme to a vendor, and after the employee reports the error to the vendor and gets a check back, he can refund the amount.

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In conclusion, spending in the economy will increase and aggregate demand will rise.

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8 0
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The net current asset investment (ncai) is defined as the change in current assets minus the change in sum of the accounts payab
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The net current asset investment (NCAI) is defined as the change in current assets minus the change in the sum of the accounts payable and accruals. - True.

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The local government decides to impose a sales tax on some selected items. On item X the final prices increases almost the full
Aloiza [94]

Answer:

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Demand (supply) is inelastic if a small change in price has little or no effect on the quantity demanded (supplied).

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Explanation:

5 0
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Answer:

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