Moose Industries faces the following tax schedule: Taxable Income Tax on Base of Bracket Percentage on Excess above Base Up to $50,000 $0 15% $50,000-$75,000 7,500 25 $75,000-$100,000 13,750 34 $100,000-$335,000 22,250 39 $335,000-$10,000,000 113,900 34 $10,000,000-$15,000,000 3,400,000 35 $15,000,000-$18,333,333 5,150,000 38 Over $18,333,333 6,416,667 35 Last year the company realized $10,000,000 in operating income (EBIT). Its annual interest expense is $1,500,000. What was the company's net income for the year

$5,610,000

Explanation:

Earnings before Interest and tax = $10,000,000

Earnings before tax (EBT) = EBIT - Interest

= 10,000,000 - 1,500,000

= $8,500,000

EBT is in the $335,000-$10,000,000 range.

Tax is therefore = Tax on base of bracket + Percentage on Excess above Base (EBT - Base of bracket)

= 113,900 + 34%( 8,500,000 - 335,000)

= $2,890,000

Net Income = EBT - Tax

= 8,500,000 - 2,890,000

= $5,610,000

answer; the correct answer is (direct foreign investment);

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough