Answer:
Earnings Before Tax (EBT) =  $16,000,000
Interest expense = $12,600,000
Explanation:
Earnings Before Tax (EBT) =  Net Income  / (1 - Tax Rate)
Earnings Before Tax (EBT) =  $12,000,000 / ( 1 - 0.25)
Earnings Before Tax (EBT) =  $12,000,000 / 0.75
Earnings Before Tax (EBT) =  $16,000,000
Interest expense =  Earnings Before Interest and taxes (EBIT) - Earnings Before taxes (EBT)
Interest expense = $28,600,000 - $16,000,000
Interest expense = $12,600,000
               Income Statement
Details                               Amount
EBIT                                  $28,600,000
Less: Interest expenses  <u>$12,600,000</u>
EBT                                   $16,000,000
Tax at 25%                       <u>$4,000,000</u>
Net Income                      $12,000,000