DeYoung Devices Inc., a new high-tech instrumentation firm, is building and equipping a new manufacturing facility. Assume that currently its equipment must be depreciated on a straight-line basis over 10 years, but Congress is considering legislation that would require the firm to depreciate the equipment over 7 years. If the legislation becomes law, which of the following would occur in the year following the change?

Answer

		The firm's reported net income would increase.
		The firm's operating income (EBIT) would increase.
		The firm's taxable income would increase.
		The firm's net cash flow would increase.
		The firm's tax payments would increase.