Last year Tiemann Technologies reported $10,500 of sales, $6,250 of operating costs other than depreciation, and $1,300
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Last year Tiemann Technologies reported $10,500 of sales, $6,250 of operating costs other than depreciation, and $1,300
Last year Tiemann Technologies reported $10,500 of sales, $6,250of operating costs other than depreciation, and $1,300 ofdepreciation. The company had no amortization charges, it had$5,000 of bonds that carry a 6.5% interest rate, and itsfederal-plus-state income tax rate was 25%. This year's data areexpected to remain unchanged except for one item, depreciation,which is expected to increase by $520. By how much will netafter-tax income change as a result of the change in depreciation?The company uses the same depreciation calculations for tax andstockholder reporting purposes.