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What is the new owner yearly tax savings

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Reference no: EM132571083

Question 1: Assume the Tampa Bay Rays are sold this year for $1.5 billion. At a flat tax rate of 21%, what is the new owner's yearly tax savings if she uses straight line depreciation of the purchase price over the full 15 years allowed by the IRS?

Group of answer choices

Option 1: $42 million

Option 2: $21 million

Option 3: $315 million

Option 4: $100 million

Option 5: $10.83 million

Reference no: EM132571083

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