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Ugo Office Supplies recently reported $19,500 of sales, $8,250 of operating costs (excluding depreciation), and $1,750 of depreciation. It had $9,000 of bonds outstanding that

Ugo Office Supplies recently reported $19,500 of sales, $8,250 of operating costs (excluding depreciation), and $1,750 of depreciation. It had $9,000 of bonds outstanding that carry a 7% interest rate, and its federal-plus-state income tax rate was 40%. What was the amount of the firm's earnings before taxes (EBT)?*

5/5

$5,322

$8,870

$10,620

$10,378

None of the above

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