Pdq corp has sales of 4000000 the firms cost of goods sold


PDQ Corp. has sales of $4,000,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000. The firm's interest expense is $250,000, and the corporate tax rate is 40%. What is PDQ's tax liability?

A) $260,000
B) $258,000
C) $360,000
D) $600,000

 

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Finance Basics: Pdq corp has sales of 4000000 the firms cost of goods sold
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