In 20X0, Lionsgate Logistics struck a deal with the city of Des Moines to move its headquarters

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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 five-year tax abatement arrangement that would require the company to pay only 20% of the property tax in 20Xl 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:

20Xl: $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 20Xl-20X6.

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Government And Not For Profit Accounting Concepts And Practices

ISBN: 9781119803898

9th Edition

Authors: Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese

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