If the tax rate is 30%,interest expense is $15,000 and operating profit is $78,000,what is the profit for the year?

Question

Quizplus · Accepted Answer

First, we need to calculate the taxable income by subtracting the interest expense from the operating profit: 
$78,000 - $15,000 = $63,000 
Then, we need to apply the tax rate of 30% to calculate the tax amount: 
$63,000 x 0.3 = $18,900 
Finally, we subtract the tax amount from the taxable income to calculate the profit for the year: 
$63,000 - $18,900 = $44,100

If the Tax Rate Is 30%,interest Expense Is $15,000 and Operating