Hollys art galleries recently reported 7.9 million of net income. Its EBIT was 15 million,...
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Accounting
Hollys art galleries recently reported 7.9 million of net income. Its EBIT was 15 million, and its federal tax rate was 21%. Ignore any possible state corporate taxes. What was its interest expense? Can't write out the headings for an income statement and then fill in the known values. Then divide 7.9 million net income by 1-t = 0.79 to find a pretax income. The difference between EBIT and taxable income must be the interest expense. Enter your answer in dollars. For example an answer of 1.2 million should be entered as one, 200, 000. Round your answer to the nearest dollar.
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