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The taxable income for a motorcycle sales and repair business is estimated to be $150,000 this year. A single-value tax rate of 39% is used.

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The taxable income for a motorcycle sales and repair business is estimated to be $150,000 this year. A single-value tax rate of 39% is used. A new engine diagnostics system will cost $40,000 and have an average annual depreciation of $8,000. The equipment will increase gross income by an estimated $9,000 and expenses by $2,000 for the year. Compute the expected change in income taxes for the year if the new system is purchased

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