How much was the firm taxable income or earnings

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Reference no: EM131357378

Frederickson Office Supplies recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 40 percent. How much was the firm's taxable income, or earnings, before taxes (EBT)?

Reference no: EM131357378

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