ABC Inc. has sales of $601,000, costs of $257,000, depreciationexpense of $63,000, interest expense of...

ABC Inc. has sales of $601,000, costs of $257,000, depreciation expense of $63,000, interest expense of $30,000, and a tax rate of 35 percent. What is the net income for this firm?

None of the above

$163,150

$204,100

$182,650

$223,600

Expert Solution

Net income = Sales - Costs - Depreciation expense - Interest expense

= $601,000 - $257,000 - $63,000 - $30,000

= $251,000

Net income = $251,000*(1 - 35%)

= $163,150.

Hence, the answer is option a.

jeff jeffy answered 2 years ago

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