Emery Mining Inc. recently reported $150,000 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. The company had $16,500 of outstanding bonds that carry a 7.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income? The firm uses the same depreciation expense for tax and stockholder reporting purposes a. $35,167.33 b. $37,018.24 c. $38,966.57 d. $41,017.44 e. $43,068.31
Emery Mining Inc. recently reported $150,000 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. The company had $16,500 of outstanding bonds that carry a 7.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income? The firm uses the same depreciation expense for tax and stockholder reporting purposes a. $35,167.33 b. $37,018.24 c. $38,966.57 d. $41,017.44 e. $43,068.31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Emery Mining Inc. recently reported $150,000 of sales,
$75,500 of operating costs other than depreciation, and
$10,200 of depreciation. The company had $16,500 of
outstanding bonds that carry a 7.25% interest rate, and its
federal-plus-state income tax rate was 35%.
How much was the firm's net income? The firm uses the same
depreciation expense for tax and stockholder reporting
purposes
a. $35,167.33
b. $37,018.24
c. $38,966.57
d. $41,017.44
e. $43,068.31
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