A firm's has recently purchased some new equipment and are depreciating the equipment over a 20-year life.

If new tax rules allow them to depreciate the equipment over 10 years instead (effectively increasing the annual depreciation amount), which of the following changes would occur (assume all else equal)?

	a.	The firm's operating income (EBIT) would increase.
	b.	The firm's taxable income would increase.
	c.	The firm's tax payments would increase.
	d.	The firm's reported net income would increase.
	e.	None of the other options listed would occur.