Question
In: Finance
Last year Tiemann Technologies reported $10,500 of sales, $6,250 of operating costs other than depreciation, and...
Last year Tiemann Technologies reported $10,500 of sales, $6,250 of operating costs other than depreciation, and $1,300 of depreciation. The company had no amortization charges, it had $5,000 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 $540. By how much will net after-tax income change as a result of the change in depreciation? The company uses the same depreciation calculations for tax and stockholder reporting purposes.
Select the correct answer.
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Solutions
Expert Solution
Solution :
The net after-tax income change as a result of the change in depreciation = - $ 351
The solution is option c. - $ 351.00
Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.
jeff jeffy answered 1 year agoRelated Solutions
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