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company recently reported $550,000 of sales, $352,000 of operating costs other than depreciation, and $12,000 of depreciation. The company had $160,000 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's net income? The firm uses the same depreciation expense for tax and stockholder reporting purposes.      $133,500     $178,000     $140,620

company recently reported $550,000 of sales, $352,000 of operating costs other than depreciation, and $12,000 of depreciation. The company had $160,000 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's net income? The firm uses the same depreciation expense for tax and stockholder reporting purposes.      $133,500     $178,000     $140,620

Intermediate Financial Management (MindTap Course List)
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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A company recently reported $550,000 of sales, $352,000 of operating costs other than depreciation, and $12,000 of depreciation. The company had $160,000 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's net income? The firm uses the same depreciation expense for tax and stockholder reporting purposes. 

   

$133,500
   

$178,000
   

$140,620
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