Zoose Industries sells sport apparels. The company faces the following tax rate schedule: Taxable Income Tax on Base of Bracket Percentage on Excess above Base Up to $50,000 $0 15% $50,000-$75,000 7,500 25 $75,000-$100,000 13,750 34 $100,000-$335,000 22,250 39 $335,000-$10,000,000 113,900 34 $10,000,000-$15,000,000 3,400,000 35 $15,000,000-$18,333,333 5,150,000 38 Over $18,333,333 6,416,667 35 Last year the company realized $7,000,000 in operating income (EBIT). Its annual interest expense is $1,500,000. What was the company’s net income for the year?
Zoose Industries sells sport apparels. The company faces the following tax rate schedule: Taxable Income Tax on Base of Bracket Percentage on Excess above Base Up to $50,000 $0 15% $50,000-$75,000 7,500 25 $75,000-$100,000 13,750 34 $100,000-$335,000 22,250 39 $335,000-$10,000,000 113,900 34 $10,000,000-$15,000,000 3,400,000 35 $15,000,000-$18,333,333 5,150,000 38 Over $18,333,333 6,416,667 35 Last year the company realized $7,000,000 in operating income (EBIT). Its annual interest expense is $1,500,000. What was the company’s net income for the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Zoose Industries sells sport apparels. The company faces the following tax rate schedule:
| Taxable Income |
Tax on Base of Bracket
|
Percentage on Excess above Base
|
| Up to $50,000 |
$0
|
15%
|
| $50,000-$75,000 |
7,500
|
25
|
| $75,000-$100,000 |
13,750
|
34
|
| $100,000-$335,000 |
22,250
|
39
|
| $335,000-$10,000,000 |
113,900
|
34
|
| $10,000,000-$15,000,000 |
3,400,000
|
35
|
| $15,000,000-$18,333,333 |
5,150,000
|
38
|
| Over $18,333,333 |
6,416,667
|
35
|
Last year the company realized $7,000,000 in operating income (EBIT). Its annual interest expense is $1,500,000. What was the company’s net income for the year?
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