Brown Office Supplies recently reported $18,000 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation. It had $9,000 of bonds outstanding that carry a 6.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's earnings before taxes (EBT)?

1.$5,749

2.$7,460

3.$7,370

4.$8,033

5.None of the above