Molteni Motors Inc. recently reported $6 million of net income. Its EBIT was

$13 million, and its tax rate was 40%. What was its interest expense? Write out the headings for an income statement and then fill in the known values. Then divide $6 million 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 procedure to work some of the other problems.