Blair Company has $$5$ million in total assets. The company$$s assets are financed with $$1$ million

of debt, and $$4$ million of common equity. The company$$s income statement is summarized

below :

Operating Income $($EBIT$)$ $$1,000,000$

Interest Expense $100,000$

Earnings before tax $($EBT$)$ $ $900,000$

Taxes $(40\%)360,000$

Net Income $ $540,000$

The company wants to increase its assets by $$1$ million, and it plans to finance this increase by issuing $$1$ million in new debt. This action will double the company$$s interest expense, but its operating income will remain at $20$ percent of its total assets, and its average tax rate will remain at $40$ percent. If the company takes this action, What happened to the company$$s net income