5. The Midtex Corporation disposes a capital asset with an original cost of $150,000 and accumulated depreciation of $90,000 for $45,000. The company's tax rate is 40%. Calculate the after-tax cash inflow from the disposal of the capital asset. (A) ($15,000) (B) $45,000 (C) $51,000 (D) $60,000

1. Guble Manufacturing produces a single product that sells for $70. Variable costs per unit equal $45. The company expects total fixed costs to be $52,000 for the next month at the projected sales level of 2,500 units. In an attempt to improve performance, management is considering an alternative action. Suppose that management believes that a 10% reduction in the selling price will result in a 10% increase in units sold. If this proposed reduction in selling price is implemented ________. (A) operating income will decrease by $10,500 (B) operating income will increase by $11,500 (C) operating income will decrease by $13,000 (D) operating income will increase by $22,000

5. The Midtex Corporation disposes a capital asset with an original cost of $150,000 and accumulated depreciation of $90,000 for $45,000. The company's tax rate is 40%. Calculate the after-tax cash inflow from the disposal of the capital asset.
(A) ($15,000)
(B) $45,000
(C) $51,000
(D) $60,000

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