The total interest expense is $800,000
Net income = (EBIT - interest expense) x (1 - tax rate)
$13,000,000 = ($20,800,000 - interest expense) x (1 - 35%)
$13,000,000 = ($20,800,000 - interest expense) x 0.65
$13,000,000 = $13,520,000 - 0.65 interest expense
0.65 interest expense = $13,520,000 - $13,000,000 = $520,000
Interest expense = $520,000 / 0.65 = $800,000
The total interest expense is $800,000
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