Charleston Manufacturing Inc. has a 40% tax rate. In 2021, sales increased by 12%, while Cost of Goods sold and interest expense remained the same.

INCOME STATEMENT	2020
Net Sales	$80,000
Cost of Goods Sold	$65,000
EBIT	?
Interest Expense	$15,000
EBT	$130,000
Taxes	?
Net Income	$182,000
Dividends	$27,000
Additions to Retained Earnings	$155,000
BALANCE SHEET ASSETS
Cash	$50,000
Accounts Receivable	$80,000
Inventories	?
Total Current Assets	$230,000
Net Fixed Assets	$37,000
Total Assets	?
LIABILITIES AND EQUITY
Accounts Payable	$60,000
Notes Payable	$20,000
Accruals	$20,000
Total Current Liabilities	$100,000
Long-term Debt	$25,000
Common Stock	$19,000
Retained Earnings	$21,000
Total Liabilities and Equities	?

2. What is Charleston Manufacturings tax amount for 2020?
   1. $40,000
   2. $72,000
   3. $52,000
   4. $5,200