Question $1$

Meric Mining Inc. recently reported $$15,000$ of sales, $$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 $6\mathrm{.}25\%$ 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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$$3,789\mathrm{.}87$

$$3,989\mathrm{.}33$

$$4,199\mathrm{.}30$

$$4,420\mathrm{.}31$

$$4,641\mathrm{.}33$

Question $2$