In 2021, a basketball player signed a contract reported to be worth $52.1 million. The contract was to be paid as $6.7 million in 2021, $8.5 million in 2022, $9.1 million in 2023, $9.2 million in 2024, $9.2 million in 2025, and $9.4 million in 2026. If the appropriate interest rate is 7 percent, what kind of deal did the player dunk? Assume all payments are paid at the end of the year. Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.

In 2021, a basketball player signed a contract reported to be worth $52.1 million. The contract was to be paid as $6.7 million in 2021, $8.5 million in 2022, $9.1 million in 2023, $9.2 million in 2024, $9.2 million in 2025, and $9.4 million in 2026. If the appropriate interest rate is 7 percent, what kind of deal did the player dunk? Assume all payments are paid at the end of the year. Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 49P

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