Income statement little books Inc. recently reported $3million of net income. Its EBIT was $6 million, and its tax was 40 percent. What was its interest expense? Write out the headings for an income statement and then fill in the known values. Then divide $3 million of the net income by (1 –T) = (0.6 to find the pretax income. The difference between EBIT and taxable income must be the interest expense. Use this same procedure to work some of the other problems.