XYT Company engaged in a transaction that generated $50,000 cash deposited in the company bank account and required the company to pay $12,000 out of that account.XYT's marginal tax rate is 30%.Which of the following statements is false?
A) If the deposit is taxable income and the payment is deductible,the transaction generated $26,600 after-tax cash flow.
B) If the deposit is taxable income but the payment is nondeductible,the transaction generated $35,000 after-tax cash flow.
C) If the deposit is not taxable income and the payment is nondeductible,the transaction generated $38,000 after-tax cash flow.
D) None of the above is false.
Correct Answer:
Verified
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