Meric Mining Inc. recently reported $15,000 of sales, $7,500 in operating costs other than depreciation, and $1,200 in depreciation. The company had no amortization charges, it had outstanding $6.500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income after taxes? Meric uses the same depreciation expense for tax and stockholder reporting purposes. A) $3,284.55 B) $3,457.42 C) $3,639.39 D) $3,830.94 E) $4,022.48
Meric Mining Inc. recently reported $15,000 of sales, $7,500 in operating costs other than depreciation, and $1,200 in depreciation. The company had no amortization charges, it had outstanding $6.500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income after taxes? Meric uses the same depreciation expense for tax and stockholder reporting purposes. A) $3,284.55 B) $3,457.42 C) $3,639.39 D) $3,830.94 E) $4,022.48
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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