Charge for depreciation and amortization
Pearson brothers recently reported an EBITDA of $9.0 million and net income of $2.25 million. It had $2.43 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?
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Organizations must follow GAAP or IFRS with respect to financial accounting in order to provide accurate, transparent and consistent financial information. Managerial accounting has no such standards. Therefore, is managerial accounting informatio
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Collectability of the remaining lease payments is reasonably assured and there are no material cost uncertainties. The interest rate implicit in the lease payments is 10%. Both companies use straight-line depreciation.
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