Ant Inc. had $6 million in gross income, operating expenses of $1.5 million, paid $1.2 million in interest on $12 million borrowed, and paid a dividend of $0.75 million. What is Ant Inc.'s taxable income? a) $3.3 million b) $3 million c) $2.5 million d) $4 million

Ant Inc. had $6 million in gross income, operating expenses of $1.5 million, paid $1.2 million in interest on $12 million borrowed, and paid a dividend of $0.75 million. What is Ant Inc.'s taxable income? a) $3.3 million b) $3 million c) $2.5 million d) $4 million

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

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Question

100%

What is Ant Inc. taxable income?

Ant Inc. had $6 million in gross income,
operating expenses of $1.5 million, paid $1.2
million in interest on $12 million borrowed,
and paid a dividend of $0.75 million. What is
Ant Inc.'s taxable income?
a) $3.3 million
b) $3 million
c) $2.5 million
d) $4 million

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