Last year Almazan Software reported $10.500 million of sales,$6.250 million of operating costs other than depreciation,and $1.300 million of depreciation.The company had $5.000 million of bonds that carry a 6.5% interest rate,and its federal-plus-state income tax rate was 25%.This year's data are expected to remain unchanged except for one item,depreciation,which is expected to increase by $.670 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.(Round your final answer to 3 decimal places. )
A) -$0.388
B) -$0.444
C) -$0.479
D) -$0.436
E) -$0.503
Correct Answer:
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