Accounting Problem 3.5 Papa Roach Exterminators, Inc., has sales of $554,000, total costs of $245,000, depreciation expense of $40,000, interest expense of $27,000, and an average tax rate of 35 percent. What is the net income for the firm? a. $48,100 b. $224,300 c. $197,300 d. $157,300 e. $184,300

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QUESTION 6 You are given the following information for Nickels Corp.: Net sales = $3,600,000; Cost of goods sold = $2,300,000; Addition to retained earnings = $100,000; Dividends paid to preferred and common stockholders = $200,000; Interest expense = $100,000. The firm's tax rate is 40 percent. What is the depreciation expense for Nickels Corp.? O $550,000 O $700,000 O $650,000 O $820,000