Nell sells a passive activity with an adjusted basis of $45,000 for $105,000. Suspended losses attributable to this property total $45,000. The total gain and the taxable gain are: a.$60,000 total gain; $105,000 taxable gain. b.$10,000 total gain; $15,000 taxable gain. c.$60,000 total gain; $0 taxable gain. d.$60,000 total gain; $15,000 taxable gain.

A4-year project has an annual operating cash flow of $59,000. at the beginning of the project, $5,000 in net working capital was required, which will be recovered at the end of the project. the firm also spent $23,900 on equipment to start the project. this equipment will have a book value of $5,260 at the end of the project, but can be sold for $6,120. the tax rate is 35 percent. what is the year 4 cash flow?