Brown Office Supplies recently reported $18,000 of sales,$8,250 of operating costs other than depreciation,and $1,750 of depreciation.It had $9,000 of bonds outstanding that carry a 7.0% interest rate,and its federal-plus-state income tax rate was 40%.How much was the firm's earnings before taxes (EBT) ?
A) $5,749
B) $8,918
C) $7,370
D) $8,033
E) $7,223
Correct Answer:
Verified
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