Problem:
ABC recently reported $47,014 of sales, $13,600of operating costs other than depreciation, and $5,548 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 15% interest rate.
Required:
How much was the firm's taxable income, or earnings before taxes (EBT)?
Note: Explain all steps comprehensively.