ACCOUNTING A502 – A not-for profit nursing home has total expenses of $20 million

A not-for profit nursing home has total expenses of $20 million. Sales tax in the state is 7%. Expenses are broken down into salaries ($12 million), supplies ($6 million), and pharmacy ($2 million). The benefit received by the nursing home from the sales tax exemption assuming that pharmacy items are exempt from state sales tax is?A.$480,000B.$1.26 millionC.$1.4 millionD.$420,000

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