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If an Old Asset Sells Below Book Value (UCC)and the Asset

Question 38

Multiple Choice

If an old asset sells below book value (UCC) and the asset pool ends,from a tax standpoint:


A) there is a decrease in cash flow.
B) there is an increase in cash flow.
C) there is no effect on cash flow.
D) there is a decrease in net present value.

Correct Answer:

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