Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. company l sold an inventory item to firm m for $40

Company L sold an inventory item to Firm M for $40,000. Company Ls marginal tax...

80.2K

Verified Solution

Question

Accounting

Company L sold an inventory item to Firm M for $40,000. Company Ls marginal tax rate is 21 percent. In each of the following cases.

Required:

Compute Company Ls after-tax cash flow from the sale when Firm Ms payment consisted of $10,000 cash and its note for $30,000. The note is payable two years from the date of sale. Company Ls basis in the inventory item was $15,700.

Compute Company Ls after-tax cash flow from the sale when Firm Ms payment consisted of $5,000 cash and its note for $35,000. The note is payable two years from the date of sale. Company Ls basis in the inventory item was $47,000.

Compute Company Ls after-tax cash flow from the sale when Firm Ms payment consisted of $40,000 cash. Company Ls basis in the inventory item was $18,000.

Compute Company Ls after-tax cash flow from the sale when Firm Ms payment consisted of $40,000 cash. Company Ls basis in the inventory item was $44,000.

Please show your work. Every other answer on here that is the same as this one is incorrect.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

1- Use calculus to find the absolute maximum and minimum values of the following functions on...

Physics
1.2K views

An HCl molecule has rotational vibrational motions If the rms velocity of HCI molecules in...

Basic Math
1.2K views

24 16 8 0 0 A No 1 2 3 Does the graph represent a...

Statistics
1.2K views

A survey of 25 randomly selected customers found the ages shown (in years). The mean...

Algebra
1.2K views

the rest of column E Will find the Rank of E2 in the Excel spreadsheet...

Accounting
1.2K views

Required: 1. Assuming McCullough calculates two overhead rates as recommended by the staff accountant, calculate:...

Accounting
1.2K views

A, B, and C form the ABC general partnership, agreeing to be equal partners. A...

Accounting
1.2K views

3. Describe the sustainability report and mention the benefits derived from it for the company...

Accounting
1.2K views

Required: 1. Calculate the total goods available for sale (in units and cost). 2. Calculate...

Accounting
1.2K views

=min =min

Finance
1.2K views

7. When is the price determined at which parties in a forward contract transact...

Accounting
1.2K views

A. Sireh Bhd operates a chain of traditional homestays in Negeri Sembilan. The company decided...