Ms$.$ T$.$ Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln for $$460,000.$ Of this sum, $$56,000$

is described by the supplier as an installation cost. Ms$.$ Potts does not know whether the company will need to treat this cost as a tax$-$

deductible current expense or as a capital investment. In the latter case, the company could depreciate the $$56,000$ straight$-$line over

five years.

How will the tax authority's decision affect the after$-$tax cost of the kiln? The tax rate is $25\%,$ and the opportunity cost of capital is $6\%.$

$($Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.$)$