Firm A has a value of $200 million, and B has a value of $120 million. Merging the two would allow a cost savings with a present value of $30 million. Firm A purchases B for $130 million. How much do firm A's shareholders gain from this merger?
A. $30 million
B. $20 million
C. $15 million
D. $10 million
2. A company buys a new $900,000 machine for its factory. In the first year of depreciation how much of the cost of the machine will be depreciated (in dollars) if this is a five-year MACRS asset?
a) $600,000
b) $180,000
c) $160,000
d) $120,000