Question

national geographic is replacing an old printing press with a new one. the old press is being sold for $350,000 and it has a net book value of $75,000. assume that national geographic is in the 30% income tax bracket. how much cash will national geographic net from the sale? round to the nearest penny. do not include a dollar sign in your answer. increase in marginal tax rate of a company.

Answer 1

After selling their old printing press for $350,000 and paying taxes of $82,500 at a 30% tax rate, National Geographic will net $267,500 from the sale.

Step-by-step explanation:

The student's question involves calculating the cash National Geographic will net from the sale of their old printing press. The old press is sold for $350,000 with a net book value of $75,000, leading to a gain of $275,000. With National Geographic in a 30% income tax bracket, the taxes on this gain will be $82,500 ($275,000 x 0.30). Subtracting the tax from the sale price gives us the net cash from the sale, totaling $267,500 ($350,000 - $82,500). To find the exact amount with cents, we presume no cents in the given values, so the final answer is 267500.00, rounded to the nearest penny.