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Computing interest tax savings

​(Computing interest tax​ savings) Dharma Supply has earnings before interest and taxes​ (EBIT) of $512,000​, interest expenses of $349 comma 000349,000​, and faces a corporate tax rate of 3535 percent.

a. What is Dharma​ Supply’s net​ income?

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b. What would​ Dharma’s net income be if it​ didn’t have any debt​ (and consequently no interest​ expense)?

c. What are the​ firm’s interest tax​ savings?

a. Dharma​ Supply’s net income is $nothing.

  ​(Round to the nearest​ dollar.)

b. If it​ didn’t have any​ debt, Dharma​ Supply’s net income is $nothing.

​(Round to the nearest​ dollar.)

c. The​ firm’s interest tax savings are $nothing.

​(Round to the nearest​ dollar.)

 
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