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Koch's, GP sold equipment with a $132,900 adjusted tax basis (accumulated depreciation in the amount...

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Accounting

Koch's, GP sold equipment with a $132,900 adjusted tax basis (accumulated depreciation in the amount of $67,100) for $200,000. The purchaser paid $25,000 in cash and assumed Hurwitzs $175,000 mortgage on the asset. Compute Kochs before-tax cash flow from this sales transaction assuming a 37% tax rate. A. $200,000. B. $25,000. C. $2,349.

D. $1,515. E. None of the above;

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