2. RIM Inc. reported the following financial facts at the year-end Dec 2018. Total Interest-Bearing Debt= $40,000; Sales= $15,000; Total Operating Cost= $4,000. If tax rate 40% and interest rate is 6%, Find interest expense for the corresponding company. $5000 $2700 $346 $2400 None of the above

2. RIM Inc. reported the following financial facts at the year-end Dec 2018. Total Interest-Bearing Debt= $40,000; Sales= $15,000; Total Operating Cost= $4,000. If tax rate 40% and interest rate is 6%, Find interest expense for the corresponding company. $5000 $2700 $346 $2400 None of the above

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 1BCRQ

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Question

2. RIM Inc. reported the following
financial facts at the year-end Dec
2018. Total Interest-Bearing Debt=
$40,000; Sales= $15,000; Total
Operating Cost= $4,000. If tax rate
40% and interest rate is 6%, Find
interest expense for the
corresponding company.
$5000
$2700
$346
$2400
None of the above

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