Question: Please show all work. 6. Madison Metals recently reported $9,000 in sales, $6,000 in operating costs other than depreciation, and $1,500 of depreciation. The company

Please show all work.

6. Madison Metals recently reported $9,000 in sales, $6,000 in operating costs other than depreciation, and $1,500 of depreciation. The company has no amortization charges and no non-operating income. It had issued $4,000 in bonds that carry a 7% interest rate, and its federal-plus-state income tax rate was 40%. What was the firms taxable, or pre-tax, income?

a. $1180

b. $1220

c. $1260

d. $1300

e. $1340

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