What is the firm ebt


Auton, Inc. a manufacturer of robots had total revenues of $2,000,000 in the year ending 2011 with an operating cost of $1,000,000. The company's earnings are taxed at 30% and its annual interest expenses were $300,000. The only depreciable asset the company owns is a specialized machine that it bought for $1,000,000 and is depreciating over 5 years using the straight line method. What is the firm's EBT?

A. $150,000

B. $350,000

C. $800,000

D. $500,000

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Accounting Basics: What is the firm ebt
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