Cash-Flow Analysis: If an Existing Asset Is Sold at a Gain

Multiple Choice

Cash-flow analysis: If an existing asset is sold at a gain, and the gain is taxable, then the after-tax proceeds from this transaction would be equal to:

A) Net proceeds from the sale plus the after-tax gain on the sale.
B) Net proceeds from the sale less the after-tax gain on the sale.
C) Net proceeds from the sale plus the taxes paid on the gain.
D) Net proceeds from the sale less the taxes paid on the gain.
E) The pre-tax proceeds plus taxes on the gain.