Homework answers / question archive /  Crosson Corporation recently sold a used machine for $40,000

 Crosson Corporation recently sold a used machine for $40,000

Accounting

Share With

 Crosson Corporation recently sold a used machine for $40,000. The machine had a book value of $60,000 at the time of the sale. What is the after-tax cash flow from the sale, assuming the company's marginal tax rate is 20 percent?

1. $40,000
2. $60,000
3. $44,000
4. $32,000