Question

Atlantic Fisheries has an EBIT of $3,280, depreciation of $1,850, cost of goods sold of $6,920, dividends paid of $750, interest expense of $860, and sales of $6,500. What is the taxable income

Answer 1

Answer: $2420

Explanation:

The following can be deduced from the question:

EBIT = $3,280

Depreciation = $1,850

Cost of goods sold = $6,920

Dividends = $750

Interest expense = $860,

Taxable Income will be calculated as:

= EBIT - Interest Expense

= $3280 - $860

= $ 2420