Emery mining inc. recently reported $170,000 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. the company had $16,500 of outstanding bonds that carry a 7.25% interest rate, and its federal-plus-state income tax rate was 35%. how much was the firm's net income? the firm uses the same depreciation expense for tax and stockholder reporting purposes. (round your intermediate and final answers to two decimal places.)

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4 February, 05:13

Emery mining inc. recently reported $170,000 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. the company had $16,500 of outstanding bonds that carry a 7.25% interest rate, and its federal-plus-state income tax rate was 35%. how much was the firm's net income? the firm uses the same depreciation expense for tax and stockholder reporting purposes. (round your intermediate and final answers to two decimal places.)

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Flynn · Answer 1

Net Income After Tax = Net Income Before Tax - Tax Net Income Before Tax = 170,000-75,500-10,200 + (16,500*0.0725) = 85,496.25 Tax = 0.35*Net Income Before Tax=0.35*85,496.25 = 29,923.69 Net Income After Tax = 85,496.25 - 29,923.69 = 55,572.56