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

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 40%.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