Last Year Tiemann Technologies Reported $10,500 of Sales,$6,250 of Operating

question 67

Multiple Choice

Last year Tiemann Technologies reported $10,500 of sales,$6,250 of operating costs other than depreciation,and $1,300 of depreciation.The company had no amortization charges,it had $5,000 of bonds that carry a 6.5% interest rate,and its federal-plus-state income tax rate was 35%.This year's data are expected to remain unchanged except for one item,depreciation,which is expected to increase by $750.By how much will net after-tax income change as a result of the change in depreciation? The company uses the same depreciation calculations for tax and stockholder reporting purposes.

• A) −463.13
• B) −487.50
• C) −511.88
• D) −537.47
• E) −564.34

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Definitions:

Pyuria

The presence of pus in the urine, typically indicating an infection or inflammation in the urinary tract.

Pus

A thick, yellowish or greenish opaque liquid produced in infected tissue, consisting of dead white blood cells and bacteria.

Urine

A liquid waste product filtered from the blood by the kidneys, excreted through the urethra.

Atherosclerosis

A condition characterized by the hardening and narrowing of the arteries due to buildup of plaque, often leading to coronary heart disease.