Venus Inc.,a software consultancy firm,had depreciation of $20.8 million and a net interest expense of $3.2 million for the past year.The firm's operating profit for the same year was $319.0 million.What was the firm's taxable income for the past year?
A) $400 million
B) $299.2 million
C) $295 million
D) $316.8 million

Question

Venus Inc.,a software consultancy firm,had depreciation of $20.8 million and a net interest expense of $3.2 million for the past year.The firm's operating profit for the same year was $319.0 million.What was the firm's taxable income for the past year?
A) $400 million
B) $299.2 million
C) $295 million
D) $316.8 million

Quizplus · Accepted Answer

Taxable income is calculated by subtracting depreciation and net interest expense from the operating profit. Thus, $319.0 million - $20.8 million - $3.2 million = $295 million.

Venus Inc,A Software Consultancy Firm,had Depreciation of $20