Acme Pest Control Has Sales of $13,500, Cost of Goods

Multiple Choice

Acme Pest Control has sales of $13,500, cost of goods sold of $4,000, selling expenses of $3,500, depreciation of $2,000, interest expense of $2,000, and a tax rate of 34%. What is Acme's taxable income and tax expense?

A) $6,000; $2,040
B) $2,000; $1,320
C) $4,000; $1,360
D) $2,000; $680