The legislature is considering changing tax rates from 7 percent to either 6 percent or 5 percent. Pathways Landscaping Equipment is trying to understand the impact of these changes and is using scenario analysis to assess the expected value of the impact. Before any changes are made, the base case scenario is $1,000,000 in taxable income at a tax rate of 7 percent.

Here is the expected financial impact of each scenario assuming that taxable income increases or decreases by 5 percent and either no changes are made in the 7 percent tax rate or the tax rate is decreased to either 6 percent or 5 percent.

Income Scenarios	Taxable Income		If Tax Rate = 7%, Taxes Owed =		If Tax Rate = 6%, Taxes Owed =		If Tax Rate = 5%, Taxes Owed =
Income increases by 5%	$	1,050,000	$	3,500	$	(7,000)	$	(17,500)
Income remains the same	$	1,000,000		0	$	(10,000)	$	(20,000)
Income decreases by 5%	$	950,000	$	(3,500)	$	(13,000)	$	(22,500)

Based on Pathways assessment of the probability of the tax law changes and potential changes in their own taxable income, here are the joint probabilities of the changes in tax rate and taxable income.

			If Tax Rate = 7%, Taxes Owed =	If Tax Rate = 6%, Taxes Owed =	If Tax Rate = 5%, Taxes Owed =
	Taxable Income		7%	6%	5%
Income increases by 5%	$	1,050,000	0.05	0.05	0.15
Income remains the same	$	1,000,000	0.2	0.2	0.1
Income decreases by 5%	$	950,000	0.05	0.1	0.1

Required:

Based on the expected changes in taxable income and the change in tax rate, what is the value of the expected impact on Pathways taxes? (Negative amounts should be entered using a minus sign.)