The company uses the same depreciation calculations for tax


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 $0.63 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.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The company uses the same depreciation calculations for tax
Reference No:- TGS02608587

Expected delivery within 24 Hours