Problem:
Suppose you sell a fixed asset for $119,000 when its book value is $143,000.
Required:
Question: If your company's marginal tax rate is 15%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?
• $122,600
• $24,000
• $20,400
• $143,000
Note: Please show the work not just the answer.