Exotica Ltd is investing in the production of a new watch. The revenue from this investment is

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Exotica Ltd is investing in the production of a new watch. The revenue from this investment is $700, 000. Operating expenses is $500,000 and depreciation is $90,000. Tax rate is 30%.

Based on the information answer the following questions.

a. Calculate earnings before interest and tax (EBIT).

b. Calculate tax paid by Exotica Ltd.

c. What is the profit for this investment?

Related Book For answer-question

Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

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Posted Date: Jun 21, 2023 04:00 AM

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Exotica Ltd is investing in the production of a new watch. The revenue from this investment is

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