Rogue Corp. has sales of $4,250,000; the firm’s cost of goods sold is

Rogue Corp. has sales of $4,250,000; the firm’s cost of goods sold is $2,500,000; and its total
operating expenses are $600,000. The firm’s interest expense is $250,000, and the corporate tax rate
is 40%. What is Rogue’s tax liability?

A) $600,000 B) $360,000 C) $260,000 D) $258,000

ANSWER

B