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

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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.

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