Brown Office Supplies Recently Reported $15,500 of Sales,$8,250 of Operating

question 128

Multiple Choice

Brown Office Supplies recently reported $15,500 of sales,$8,250 of operating costs other than depreciation,and $1,750 of depreciation.It had $9,000 of bonds outstanding that carry a 7.0% interest rate,and its federal-plus-state income tax rate was 40%.How much was the firm's earnings before taxes (EBT) ?

• A)$4,627
• B)$4,870
• C)$5,114
• D)$5,369
• E)$5,638

---

Definitions:

Insolvency

A financial state where an individual or entity cannot meet their debt obligations as they become due.

Fiduciary

A person or organization that acts on behalf of another person or persons, putting their clients' interest ahead of their own, with a duty to preserve good faith and trust.

Agency Relationship

The association between one party and an agent who acts on behalf of that party.

Electronic Contracts

Legal agreements that are created, signed, or exchanged electronically, such as those accepted via click-through agreements on websites.