Sosa Corporation recently reported an EBITDA of $31.9 million and net income of $9.7 million. The company had $6.8 million in interest expense, and its corporate tax rate was 35 percent. What was its depreciation and amortization expense? (Round answer to 2 decimal places and enter your answer in dollars, e. g. 9,700,000.25)

Depreciation and amortization $Sosa Corporation recently reported an EBITDA of

$10,176,923.08

Explanation:

Given that,

EBITDA = $31.9 million

Net income = $9.7 million

Interest expense = $6.8 million

Corporate tax rate = 35 percent

EBT:

= Net income ÷ (1 - Tax rate)

= $9,700,000 ÷ (1 - 0.35)

= $9,700,000 ÷ 0.65

= $14,923,076.92

EBIT = EBT + Interest

        = $14,923,076.92 + $6,800,000

        = $21,723,076.92

Depreciation and amortization expense:

= EBITDA - EBIT

= $31,900,000 - $21,723,076.92

= $10,176,923.08