Problem Set 1 Back to Assignment Attempts Keep the Highest / 1 1. Problem 2-03 (Income Statement) ebook Income statement Holly's Art Galleries recently reported $7.9 million of net income. Its EBIT was $14 million, and its federal tax rate was 21% (ignore any possible state corporate taxes). What was its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $7.9 milion net income by 1 - T = 0.79 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar $ Grade It Now Save & Continue Continue without saving