13. Johnson Inc sold inventory to its sole shareholder, Brad, at its FMV of $140,000 when its tax basis was $200,000 resulting in a $60,000 realized loss. The corporation's marginal tax rate for the year was 34%. Its after-tax cash flow from the sale was
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The problem asks for cash flow.
We start with the amount received in the ...
The solution explains the detailed calculations for the answer.