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Murphy Inc. reported $550,000 of sales, $352,000 of operating costs other than depreciation, and $12,000 of depreciation. The company had $160,000 of outstanding bonds that
Murphy Inc. reported $550,000 of sales, $352,000 of operating costs other than depreciation, and $12,000 of depreciation. The company had $160,000 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's net income? The firm uses the same depreciation expense for tax and stockholder reporting purposes.
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