Interest versus dividend expense???Michaels Corporation expects earnings before interest and taxes to be $ 50,000

for this period. Assuming an ordinary tax rate of 35 % ?, compute the? firm's earnings after taxes and earnings available for common stockholders? (earnings after taxes and preferred stock? dividends, if? any) under the following? conditions:

a. The firm pays $ 12,000 in interest.

b. The firm pays $ 12,000 in preferred stock dividends.

a. Complete the fragment of Michaels? Corporation's income statement below to compute the? firm's earnings after taxes and earnings available for common stockholders under condition

?(a?).???(Round to the nearest? dollar.)

EBIT	$
Less: Interest expense
Earnings before taxes	$
Less: Taxes (35%)
Earnings after taxes	$
Less: Preferred dividends
Earnings available for common stockholders	$