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During a year, a professional team makes $450 million in total revenue, and faces operating costs of $250 million. The team is allowed to depreciate
During a year, a professional team makes $450 million in total revenue, and faces operating costs of $250 million. The team is allowed to depreciate its market value, equal to $1.5 billion, in equal amounts for a period of 15 years. If the corporate income tax rate (applicable to the profits of the team) is 21%, and assuming there are no other sources of costs and depreciation, what is the amount of taxes to be paid by the team? Question 15 options: A) $0 B) $1.5 billion C) $21 million D) $42 million
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