Answer:
1.4 million
Step-by-step explanation:
Given that,
Total expense = $20 million
Sales tax in the state = 7%
Expenses are broken down into:
salaries = $12 million
supplies = $6 million
Other miscellaneous not subject to tax = $2 million
Benefit received by the nursing home from the sales tax exemption:
= Total expenses × Sales tax in the state
= 20 million × 0.07
= 1.4 million