Net cash flow attributable to the asset purchase


In 2009 Firm D paid 50,000 cash for a tangible asset. In 2009 it deducted $3,140 depreciation and $7,200 for 2010 with respect to the asset. The marginal tax rate in both years was 35%.

What is the net cash flow attributable to the asset purchase in each year and the adjusted basis in the asset at the end of each year?

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Accounting Basics: Net cash flow attributable to the asset purchase
Reference No:- TGS065576

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