Frederickson Office Supplies Recently Reported $12,500 of Sales,$7,250 of Operating

question 10

Multiple Choice

Frederickson Office Supplies recently reported $12,500 of sales,$7,250 of operating costs other than depreciation,and $1,250 of depreciation.The company had no amortization charges and no non-operating income.It had $8,000 of bonds outstanding that carry a 7.5% interest rate,and its federal-plus-state income tax rate was 40%.How much was the firm's taxable income,or earnings before taxes (EBT) ?

• A) $3,230.00
• B) $3,400.00
• C) $3,570.00
• D) $3,748.50
• E) $3,935.93

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Definitions:

Cognitive Psychology

A branch of psychology focused on the study of mental processes, including perception, memory, thought, and problem-solving.

Behaviorism

An educational theory suggesting that conditioning is the root through which behaviors are learned.

Psychoanalytic Psychology

A branch of psychology that focuses on understanding human behavior through the exploration of the unconscious mind, as developed by Sigmund Freud.

American Philosopher

A scholar originating from the United States who engages in the study of fundamental questions about existence, knowledge, values, reason, mind, and language.