A taxable event occurs when an asset is sold for less than its book value. For capital budgeting purposes, the taxes on the sale
a. are treated as a reduction in cash and are deducted from the sale price
b. are treated as an increase in cash and added to cash flow
c. are treated as a reduction in cash and deducted from the taxable gain
d. are treated as a reduction in cash and deducted from the book value of the asset
e. are treated as a reduction in cash and added to operating cash flow