Federal Income Tax Expense for the year is

USE THE FOLLOWING INFORMATION FOR QUESTIONS 33-36: XYZ CORPORATION IS FINANCED AS FOLLOWS: 9% BONDS (ISSUED AT FACE VALUE).. $4,500,000 PREFERRED $6 STOCK, $100 PAR... 3,500,000 COMMON STOCK, $5 PAR. 1,000,000 Prior to bond interest expense and income taxes, income is $2,000,000. (EBIT - Earnings before interest & taxes.) Federal Income tax is computed at 20% of taxable income Federal Income Tax expense for the year is: $319.000 O $400,000 $525.000 $425.000 Next