Net Operating Income (-) Interest Expense (-) Cost Recovery Allowance (=) _________________

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Net Operating Income (-) Interest Expense (-) Cost Recovery Allowance (=) _________________

(or)

NOI (minus) Interest Expense (minus) Cost Recovery Allowance (equals) ___________________

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Step 1 Introduction

The phrase "profit before tax" refers to a measurement that examines a firm's earnings before the corporation is required to pay the corporate income tax. It is the whole amount of a company's earnings that are calculated without taking into account any taxes. On the income statement, you may get the profit before taxes by subtracting the interest expense from the operating profit.

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