Income Statement Bullseye,Inc.'s 2013 income statement lists the following income and expenses: EBIT = $900,000,interest expense = $85,000,and net income = $570,000.What are the 2013 taxes reported on the income statement?

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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.