Compute the net cash flow

Reference no: EM131393981

Towers Elevator Company plans to sell one of its machines to another company for $102,000. The book value of the machine is $90,000. Compute

(a) the gain (loss) on the sale of the machine and

(b) the net cash flow that will be generated from the sale of the machine. Towers' marginal tax rate is 40 percent.

Reference no: EM131393981

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