Answered: EBIT is $12,000 and interest expense is…

EBIT is $12,000 and interest expense is $3,000. If the tax rate is 20%, what is the net income? O $4,200 O $9,400 O $7,200 O $3,800

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 9MC: A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the companys...

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Question

EBIT is $12,000 and interest expense is $3,000. If the tax rate is 20%, what is the net income?
$4,200
$9,400
$7,200
O $3,800

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