Income Statement Bullseye, Inc.'s 2010 income statement lists the following income and expenses: EBIT = $900,000, Interest expense = $85,000, and Net income = $570,000. What is the 2010 Taxes reported on the income statement?
A) $245,000
B) $330,000
C) $815,000
D) There is not enough information to calculate 2010 Taxes.

Question

Quizplus · Accepted Answer

To find the taxes, calculate the taxable income by subtracting interest from EBIT: $900,000 - $85,000 = $815,000. Then, subtract net income from taxable income to find taxes: $815,000 - $570,000 = $245,000.