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Last year Almazan Software reported $ 1 2 7 5 6 0 1 8 . 8 5 in sales, $ 5 6 5 8 9

Last year Almazan Software reported $12756018.85 in sales, $5658915.53 of operating costs other than depreciation, and $749272.26 of depreciation. The company had $9709728.89 of bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 25%. This year's data are expected to remain unchanged except for one item, depreciation, which is expected to increase by $670000. 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.
Question 4Answer
a.
Change in NI = $-980850.71
b.
Change in NI = $502500.00
c.
Change in NI = $-502500.00
d.
Change in NI = $-167500.00

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