Use the Following Information to Answer the Following Question(s)

question 51

Multiple Choice

Use the following information to answer the following question(s) .
In 2004,A & K,Inc.expects operating income (earnings before interest and taxes) of $18,000,000.In addition,the corporation has $20,000,000 of debt outstanding with a 10 percent interest rate and will pay $1,000,000 in dividends to its common stockholders.
-Assume that A & K will receive no other sources of income during 2004.A & K's taxable income for 2004 will be:

• A)$18,000,000.
• B)$17,000,000.
• C)$16,000,000.
• D)$15,000,000.