Question
Tax abatements are reductions in taxes that result from an agreement between a government and a taxpayer, typically a corporation. In 20X0, Lionsgate Logistics struck
Tax abatements are reductions in taxes that result from an agreement between a government and a taxpayer, typically a corporation. In 20X0, Lionsgate Logistics struck a deal with the city of Des Moines to move its headquarters to a property within the city to create jobs. Part of the incentive for the company to move its headquarters is a fiveyear tax abatement arrangement that would require the company to pay only 20% of the property tax in 20X1 after the move to the headquarters is completed, 30% in 20X2, 40% in 20X3, 50% in 20X4, and 60% in 20X5. Afterward, the company must pay 100% of the property tax in subsequent years. The gross property tax for each year is as follows:
20X1: $100,000 20X2: $120,000 20X3: $96,000 20X4: $114,000 20X5: $114,000 20X6: $120,000
Determine the property tax that Lionsgate Logistics will pay for the years 20X120X6.
NOTE: Do NOT use dollar signs or commas in your answer. Only enter the numbers.
Year | Property Tax Owed |
20X1 | |
20X2 | |
20X3 | |
20X4 | |
20X5 | |
20X6 |
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