The cash inflow from the sale of a long-term plant asset at a loss is equal to the ________.

Question

Quizplus · Accepted Answer

The cash inflow from the sale of a long-term plant asset at a loss is equal to the selling price of the asset. The loss and its tax implications affect the company's financial statements but do not directly impact the cash received from the sale. The option that correctly captures this is the selling price of the asset plus the loss times the tax rate, as it reflects the cash inflow before considering the tax benefit that might be received due to the loss.

The Cash Inflow from the Sale of a Long-Term Plant