Assume that the combined federal and state income tax rate for Kafka Company is 30%. 1. The
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Assume that the combined federal and state income tax rate for Kafka Company is 30%.
1. The book value of an old machine is $40,000. Kafka sold the machine for $35,000 cash. What is the effect of this decision on after-tax cash flows?
2. The book value of an old machine is $40,000. Kafka sold the machine for $85,000 cash. What is the effect of this decision on after-tax cash flows?
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Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
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