Question: Meric Mining Inc. recently reported $ 2 1 , 0 0 0 of sales, $ 7 , 5 0 0 of operating costs other than

Meric Mining Inc. recently reported $21,000 of sales, $7,500 of operating costs other than depreciation, and $1,200 of depreciation. The company had no amortization charges, it had outstanding $6,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's net income after taxes? Meric uses the same depreciation expense for tax and stockholder reporting purposes.

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