Homework answers / question archive / Meric Mining Inc

Meric Mining Inc

Finance

Share With

Meric Mining Inc. recently reported $22,750 of sales, $7,500 of operating costs other than depreciation, and $1,200 of depreciation. The company had no amortization charges, it had outstanding $6,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's net income after taxes? Meric uses the same depreciation expense for tax and stockholder reporting purposes. 
.Select the correct answer. a. $10,232.81 0 b. $10,227.21 c. $10,210.41 d. $10,216.01 0 e. $10,221.61