BMX Company Engaged in a Current-Year Transaction That Generated a $20,000

BMX Company engaged in a current-year transaction that generated a $20,000 cash inflow.Which of the following statements is false?

A) If the cash inflow is not taxable income,the current-year tax cost of the transaction is zero.
B) If the cash inflow is taxable income and BMX's marginal tax rate is 25%,the tax cost of the transaction is $5,000.
C) If the cash inflow is taxable income and BMX's marginal tax rate is 35%,the tax cost of the transaction is $7,000.
D) None of the above is false.