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Fundamentals of Financial Manageme...

15th Edition
Eugene F. Brigham + 1 other
ISBN: 9781337395250

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BuyFindarrow_forward

Fundamentals of Financial Manageme...

15th Edition
Eugene F. Brigham + 1 other
ISBN: 9781337395250
Textbook Problem

INCOME STATEMENT Patterson Brothers recently reported an EBITDA of $7.5 million and net income of $2.1 million. It had $2.0 million of interest expense, and its corporate tax rate was 30%. What was its charge for depreciation and amortization?

Summary Introduction

To determine: The charge for depreciation and amortization of Company P.

Introduction:

A part of financial statements that lists the income and expenses of a business for an accounting year is an income statement. It is prepared at the end of accounting period to know the profitability of the business.

Explanation

Taxable income:

Taxable Income=Net Income(1Tax Rate)=$2,100,000(10.3)=$2,100,0000

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