the Formula is TNOCF= Sal- T(Sal-Book)+NWCINc. I think it means only the capital gain or loss has been taxed.

but why the whole selling amount is not been taxed?

plus the practice question on 2019 Schweser corporate finance page 209 question 3 did tax the selling amount of $10,000.

Can anyone kindly help explain this? Thanks

For a business it’s considered an investment, so only the gain (or loss) is taxable.

In the Schweser question, was the book value zero? If not, then they got it wrong.