Moose Industries faces the following tax schedule: Taxable IncomeTax on Base of BracketPercentage on Excess above BaseUp to $50,000$015%$50,000-$75,0007,50025 $75,000-$100,00013,75034 $100,000-$335,00022,25039 $335,000-$10,000,000113,90034 $10,000,000-$15,000,0003,400,00035 $15,000,000-$18,333,3335,150,00038 Over $18,333,3336,416,66735 Last year the company realized $9,000,000 in operating income (EBIT). Its annual interest expense is $1,500,000. What was the company's net income for the year?
A. $4,158,000
B. $4,950,000
C. $5,197,500
D. $3,712,500
E. $3,960,000
Answer: B
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When the cost method is used to account for an investment the carrying value of the investment is affected by
A) the dividend distributions of the investee. B) the periodic net income of the investee. C) the earnings and dividend distributions of the investee. D) neither the earnings nor the dividends of the investee.
Milton Glasses recently paid a dividend of $1.70 per share, is currently expected to grow at a constant rate of 5%, and has a required return of 11%. Milton Glasses has been approached to buy a new company
Milton estimates if it buys the company, its constant growth rate would increase to 6.5%, but the firm would also be riskier, therefore increasing the required return of the company to 12%. Should Milton go ahead with the purchase of the new company? A) Yes, because the value of the Milton Co. will increase by $3.17 per share. B) Yes, because the value of the Milton Co. will increase by $2.56 per share. C) Yes, because the value of the Milton Co. will increase by $4..59 per share. D) No, because the value of the Milton Co. will decrease by $3.17 per share.
Answer the following statement(s) true (T) or false (F)
1. The managers of a limited liability company are personally liable for the company’s debts and obligations. 2. All members of a limited liability company must be individuals. 3. Amending the articles of organization usually requires the approval of all members of the limited liability company. 4. Limited liability companies in most states are subject to annual reporting requirements with the secretary of state or other appropriate state authority.
Victimless crimes can be:
a. felonies or misdemeanors b. only felonies c. only misdemeanors d. tried in special courts e. none of the other specific choices are correct