Suppose you sell a fixed asset for $111,000 when it's book value is $127,000. If your company's marginal tax rate is 35%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?
Which of the following is correct?
a.) $10,400
b.) $116,600
c.) $127,000
d.) $16,000