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Endrun Company reported net income of $4.7 million in 1999, and $4.3 million in 2000. In reviewing the annual report an analyst notices that the Endrun took a charge of $2.4 million in 1999 for the costs of relocating its main office, and in 2000 booked a gain of $900,000 on the sale of its previous office building. What would “normalized earnings” be for 1999 and 2000 if we assume a tax rate of 36% for both years? A. $6.236 million and $3.724 million. B. $7.1 million and $5.2 million. C. $3.99 million and $2.54 million. |