Chartworth Associates' financial statements indicated that the company had EBITDA of $3,145,903. It had depreciation of $633,000, and its interest rate on debt of $1.25 million was 7.5 percent. Calculate the amount of taxes the company is likely to owe.
Tax Rate Taxable Income
15% $0 to $50,000
25 50,001 - 75,000
34 75,001 - 100,000
39 100,001 - 335,000
34 335,001 - 10,000,000
35 10,000,001 - 15,000,000
38 15,000,001 - 18,333,333
35 More than $18,333,333
A) $1,069,607
B) $1,037,732
C) $822,512
D) none of the above
Answer: C
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