Frederickson Office Supplies recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's taxable income, or earnings before taxes (EBT)?
A. $3,230.00
B. $3,400.00
C. $3,570.00
D. $3,748.50
E. $3,935.93
Answer: B
You might also like to view...
Which of the following is an example of an input control test?
a. sequence check b. zero value check c. spooling check d. range check
Which of the following statements regarding earnings per share is true?
a. Earnings per share cannot be used to compare companies of different sizes. b. Earnings per share is used to calculate the dividend yield. c. Earnings per share is calculated using the average number of authorized shares. d. It is mandatory under GAAP and IFRS to disclose earnings per share.
A group boycott is an example of a per se violation
Indicate whether the statement is true or false
If the forward price of a currency contract is higher than the spot rate, the currency is said to be at a
A) forward discount. B) forward premium. C) future expected exchange rate. D) forward swap rate.