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Ms. T. Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln for $430,000.0 or this sum, $53,000

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Ms. T. Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln for $430,000.0 or this sum, $53,000 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 taxdeductible current expense or as a capital investment. In the latter case, the company could depreciate the $53,000 straight-line over five years. How will the tax authority's decision affect the after-tax cost of the kiln? The tax rote is 25%, and the opportunity cost of capital is 8%. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Ms. T. Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln for $430,000.0 or this sum, $53,000 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 taxdeductible current expense or as a capital investment. In the latter case, the company could depreciate the $53,000 straight-line over five years. How will the tax authority's decision affect the after-tax cost of the kiln? The tax rote is 25%, and the opportunity cost of capital is 8%. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount

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