Duncan Company's income tax rate is 30%. Duncan Company wishes to sell a machine with a book value of
$40,000.
Required:
a. Assume that the machine is sold for $45,000. What is the effect on the cash flows, after taxes?
b. Assume that the machine is sold for $35,000. What is the effect on the cash flows, after taxes?

Question

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The Answer of Duncan Company's income tax rate is 30%. Duncan Company wishes to sell a machine with a book value of
$40,000.
Required:
a. Assume that the machine is sold for $45,000. What is the effect on the cash flows, after taxes?
b. Assume that the machine is sold for $35,000. What is the effect on the cash flows, after taxes?

Duncan Company's Income Tax Rate Is 30