An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure: Time Salary 0 $ 6,900,000 1 $ 5,500,000 2 $ 6,000,000 3 $ 6,500,000 4 $ 7,900,000 5 $ 8,600,000 6 $ 9,400,000 All salaries are to be paid in lump sums. The player has asked you as his agent to renegotiate the terms. He wants a $10.4 million signing bonus payable today and a contract value increase of $2,400,000. He also wants an equal salary paid every three months, with the first paycheck three months from now. If the interest rate is 5.9 percent compounded daily, what is the amount of his quarterly check? Assume 365 days in a year.

An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure: Time Salary 0 $ 6,900,000 1 $ 5,500,000 2 $ 6,000,000 3 $ 6,500,000 4 $ 7,900,000 5 $ 8,600,000 6 $ 9,400,000 All salaries are to be paid in lump sums. The player has asked you as his agent to renegotiate the terms. He wants a $10.4 million signing bonus payable today and a contract value increase of $2,400,000. He also wants an equal salary paid every three months, with the first paycheck three months from now. If the interest rate is 5.9 percent compounded daily, what is the amount of his quarterly check? Assume 365 days in a year.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter17: Property Transactions: §1231 And Recapture Provisions

Section: Chapter Questions

Problem 10DQ

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