Frederickson Office Supplies Recently Reported $12,500 of Sales, $7,250 of Operating

Frederickson Office Supplies recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,250 of depreciation.The company had no amortization charges and no non-operating income.It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 25%.How much was the firm's taxable income, or earnings before taxes (EBT) ?

A) $3,230.00
B) $3,400.00
C) $3,570.00
D) $3,748.50
E) $3,935.93