
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Hello tutor provide answer this financial accounting question

Transcribed Image Text:Harrison Stationery Ltd. recently reported $15,000 of sales, $8,500 of
operating costs other than depreciation, and $1,500 of depreciation. The
company had no amortization charges and no non-operating income. It had
$9,500 of bonds outstanding that carry a 7% interest rate, and its federal-
plus-state income tax rate was 35%.
How much was the firm's taxable income, or earnings before taxes (EBT)?
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