1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vladimir [108]
3 years ago
12

Suppose an owner pays $500 million to purchase a hockey team that earns operating profits of $50 million per year. The new owner

claims that $200 million of this prices is for the players, which he can depreciate using straight-line depreciation in five years. If the team pays corporate profit taxes of 40 percent, how much does the depreciation of the players save the owner
Business
1 answer:
V125BC [204]3 years ago
6 0

Answer:

The company will save 16 million dollar per year (till 5 years).

Explanation:

The saving can be easily calculated by subtracting tax paid after charging depreciation from tax paid if no depreciation is charge.

Tax Paid if no depreciation is charge

 = $ 50 * 40% = $ 20 Million -A

Tax Paid if depreciation is charge

 = ($ 50- $ 40") * 40% = $ 4 Million -B

" 200/5 =40

Tax saving = A-B = $ 16 Million per year

You might be interested in
Jeff receives a paycheck of $2,100 twice per month. His monthly expenses include: $1,500 on rent, $400 on a car payment, $120 fo
In-s [12.5K]

Answer:

$1,280

Explanation:

Given that,

Rent expense = $1,500

Car payment = $400

Cellphone expense = $120

Utilities = $450

Groceries expenses = $250

Entertainment expenses = $200

Jeff receives a paycheck of $2,100 twice per month, the amount received in a month is calculated as follows:

= $2,100 × 2

= $4,200

The amount left after deducting all of the expenses:

= Amount received - Rent expense - Car payment - Cellphone expense - Utilities - Groceries expenses - Entertainment expenses

= $4,200 - $1,500 - $400 - $120 - $450 - $250 - $200

= $1,280

Therefore, he have left over $1,280 for the month.

7 0
3 years ago
Which agency is responsible for approving states' special education plans and releasing idea funds accordingly?
tatiyna
The Office of Special Education and Rehabilitative Services is the agency responsible for approving a state's special education plan and releasing the IDEA funds accordingly.  These offices also help schools understand the services and responsibilities. These services help with those who have a learning disability or need specialized attention/help in school. 
7 0
3 years ago
The following information pertains to the Frameworks Corporation for May. Calculate the cost of goods sold for the period:Beginn
ANTONII [103]

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Beginning Finished Goods Inventory $19,500

Ending Finished Goods Inventory$18,000

Cost of Goods Manufactured $126,800

To calculate the cost of goods sold we need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 19,500 + 126,800 - 18,000= $128,300

6 0
2 years ago
At the local banking institution the branch manager doubles as the IT "go-to" by handling printer setups, resettingLAN passwords
andrezito [222]

Answer: d. The FTC’s Red Flags Rule

Explanation:

The Federal Trade Commission has a Red Flags Rules that requires that financial institutions like Banks should implement a program that is capable of flagging instances of suspicious activity that could point to identity theft in the covered accounts that it holds.

This bank's customers are seeing some suspicious activity in their checking accounts which could point to a case of identity theft. The Red Flags rule could therefore be the most relevant rule to the manager's discovery.

3 0
3 years ago
What is a minimum balance? A. The process of balancing your checkbook register against your bank statement B. The largest number
Leno4ka [110]

Answer:

What is a minimum balance?

D. The smallest amount of money you can keep in a bank account

Explanation:

For bank accounts, the minimum balance is the minimum dollar amount that a customer must have in an account to receive some service benefit, such as keeping the account open or receiving interest

3 0
3 years ago
Read 2 more answers
Other questions:
  • A tract of land used for raising crops or livestock is called
    14·1 answer
  • Trisha and Josh recently adopted a child, Julie. Before the adoption, Trisha, Josh, and Julie's biological parents worked out an
    11·1 answer
  • Hernandez Builders has a gross payroll for January amounting to $500,000. The following amounts have been withheld: Federal inco
    9·1 answer
  • Both the medical model and the public health model have in common:
    5·1 answer
  • Which of these statements about reverse logistics is BEST? A. Reverse logistics systems are usually more cost-efficient than for
    14·1 answer
  • On July 1, 1992, Denver Corp. purchased 3,000 shares of Eagle Co.'s 10,000 outstanding shares of common stock for $20 per share.
    12·1 answer
  • Which Theme should I choose for a summer wedding?
    12·2 answers
  • What is a good solution for Pedro if he cannot afford to buy a home in Austin, but still wants to live there, when he starts his
    6·1 answer
  • Spafford Services, Inc. provides services to clients. On May 1, a client prepaid Spafford Services $71,000 for 6-months services
    12·1 answer
  • the area of a rectangle is 600 cm2 and its breadth is two-third of its length find the length and breadth of the rectangle​
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!