Answer:
$0
Explanation:
Given that,
Total revenues = $4,000,000
Cost of goods sold = $3,500,000
Depreciation expense = $500,000
Interest expense = $120,000
Earnings before interest and taxes (EBIT):
= Total revenues - Cost of goods sold - Depreciation expense
= $4,000,000 - $3,500,000 - $500,000
= $0
Therefore, the EBIT for a firm is $0.