Answered: Sales = $1000 and costs = $500.…

Sales = $1000 and costs = $500. Interest expense = $100 and depreciation = $100. The tax rate is 30%. Net income? A. $210 B. $300 C. $90 D. $270

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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Question

Sales = $1000 and costs = $500. Interest expense = $100 and depreciation = $100. The tax rate is 30%. Net income?
A. $210
B. $300
C. $90
D. $270

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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