Last year Almazan Software reported $10.50 million of sales,$6.25 million of operating costs other than depreciation,and $1.30 million of depreciation.The company had $5.00 million of bonds that carry a 6.5% interest rate,and its federal-plus-state income tax rate was 35%.This year's data are expected to remain unchanged except for one item,depreciation,which is expected to increase by $0.70 million.By how much will net income change as a result of the change in depreciation? The company uses the same depreciation calculations for tax and stockholder reporting purposes.

Question

Quizplus · Accepted Answer

The Answer of Last year Almazan Software reported $10.50 million of sales,$6.25 million of operating costs other than depreciation,and $1.30 million of depreciation.The company had $5.00 million of bonds that carry a 6.5% interest rate,and its federal-plus-state income tax rate was 35%.This year's data are expected to remain unchanged except for one item,depreciation,which is expected to increase by $0.70 million.By how much will net income change as a result of the change in depreciation? The company uses the same depreciation calculations for tax and stockholder reporting purposes.

Last Year Almazan Software Reported $10