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Alexxandr [17]
3 years ago
8

Molteni Motors Inc. recently reported $3.5 million of net income. Its EBIT was $5.25 million, and its tax rate was 30%. What was

its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $3.5 million net income by 1 − T = 0.7 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Round your answer to the nearest dollar. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.
Business
1 answer:
Hatshy [7]3 years ago
7 0

Answer:

$250,000

Explanation:

The computation of the interest expense is shown below:

Given that

Net Income = $3,500,000

Tax rate = 30%

EBIT = $5,250,000

As we know that

EBT = EBIT - Interest Expense

So,

Interest expense = EBIT - EBT

where,

EBT = Net Income ÷ (1 -Taxes)

= $3,500,000 ÷ ( 1 - 30%)

= $5,000,000

And, the EBIT is $5,250,000

So, the interest expense is

= $5,250,000 - $5,000,000

= $250,000

We simply applied the above formula

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Based on accounting principles, the correct amount for total lease expense in 2019 is<u> $17,000.</u>

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Accounting principles state that lease payments must be recorded as an equal amount over the years of the lease.

The total lease payment is:

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All of the following are examples of results of unethical business actions except:
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People pursue _____________ projects in the market and ____________ projects in government.
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On January 1, 2018, Chamberlain Corporation pays $550,000 for an 80% ownership in Neville. Annual excess fair-value amortization
german

Answer:

The question is missing the options, which are contained in the attached question.

The consolidated net income attributable to the non-controlling interest i $30,000.00 with option D as the correct answer as found in the attached

Explanation:

Neville's net income for the year                   $175,000.00

less annual excess fair value amortization    ($25,000.00)

Net income after excess fair amortization      $150,000.00

Chamberlain's share of net income

80%*$150,000.00                                            (<u>$120,000.00)</u>

Non-controlling interest share of net income  $30,000.00

Note that the non-controlling interest is a balancing figure.

Chamberlain consolidated income can be computed thus:

Chamberlain 100%   net income   $380,000.00

Plus share of Neville's net income <u>$120,000.00</u>

Consolidated net income                 <u>$500000.00</u>

Download docx
3 0
3 years ago
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