Let's say you have $1B in profit this year and a really terrible show that cost $1B to make.
You can either write it off and pay no taxes on those profits ($200M saved), or not ($200M squandered) (I'm assuming 20% tax rate just to make math easier.)
Also, many executives have compensation packages tied to financial metrics and they've been known to game those metrics for personal gain.
You can either write it off and pay no taxes on those profits ($200M saved), or not ($200M squandered) (I'm assuming 20% tax rate just to make math easier.)
Also, many executives have compensation packages tied to financial metrics and they've been known to game those metrics for personal gain.