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Assume the Texas Rangers are sold this year for $1.5 billion. At a flat tax rate of 21%, the new owner's total nominal tax savings
Assume the Texas Rangers are sold this year for $1.5 billion. At a flat tax rate of 21%, the new owner's total nominal tax savings is __________ if the new owner uses double declining balance depreciation over 5 years. The tax savings in Year 5 would be __________. (Round to the nearest $100,000).
A) $315 million; $16.3 million
B) $315 million; $21 million
C) $105 million; $21 million
D) $315 million; $126 million
E) $290.5 million; $16.3 million
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