O&V Sold an Asset with a $78,300 Adjusted Tax Basis

Multiple Choice

O&V sold an asset with a $78,300 adjusted tax basis for $100,000. The purchaser paid $30,000 in cash and assumed O&V's $70,000 mortgage on the asset. Compute O&V's net cash flow from the sale assuming a 21% tax rate.

A) $25,443
B) $17,143
C) $23,700
D) None of these choices are correct