The Times Interest Earned Ratio of Whitney Corporation Is 3

question 275

Multiple Choice

The times interest earned ratio of Whitney Corporation is 3.0. The interest expense for the year is $21,000, and the corporation's tax rate is 40%. The corporation's after-tax net income must be:

• A) $63,000
• B) $25,200
• C) $30,000
• D) $42,000

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