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market value of $1.5 billion in equal amounts for a period of 15 years, and the corporate income tax rate (applicable to the profits the team) is 21% What is the amount of taxes to be paid by the team?

market value of $1.5 billion in equal amounts for a period of 15 years, and the corporate income tax rate (applicable to the profits the team) is 21% What is the amount of taxes to be paid by the team?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 5 During a year, a professional team makes $300 million in total revenue, and faces operating costs of $200 million. If a team is allowed to depreciate its full market value of $1.5 billion in equal amounts for a period of 15 years, and the corporate income tax rate (applicable to the profits the team) is 21%. What is the amount of taxes to be paid by the team? A $1.5 billion B so C. $21 million D.$100 million
Transcribed Image Text:QUESTION 5 During a year, a professional team makes $300 million in total revenue, and faces operating costs of $200 million. If a team is allowed to depreciate its full market value of $1.5 billion in equal amounts for a period of 15 years, and the corporate income tax rate (applicable to the profits the team) is 21%. What is the amount of taxes to be paid by the team? A $1.5 billion B so C. $21 million D.$100 million
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