Meric Mining Inc. recently reported $15,000 of sales, $7,500 of operating costs other than depreciation, and $1,200 of d
Posted: Fri Jul 01, 2022 7:51 am
Meric Mining Inc. recently reported $15,000 of sales, $7,500 ofoperating costs other than depreciation, and $1,200 ofdepreciation. The company had no amortization charges, it hadoutstanding $6,500 of bonds that carry a 6.25% interest rate, andits federal-plus-state income tax rate was 25%. How much was thefirm's net income after taxes? Meric uses the same depreciationexpense for tax and stockholder reporting purposes.