Solved

XYT Company Engaged in a Transaction That Generated $50,000 Cash

Question 56

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents