Question: In 2 0 2 3 KJPR reported $ 1 7 , 7 5 0 , 0 0 0 of sales, $ 8 , 5 0

In 2023 KJPR reported $17,750,000 of sales, $8,500,000 of operating costs other than depreciation, and $1,600,000 of depreciation. The company had no amortization charges, it had $6,000,000 of bonds outstanding that carry a 12% interest rate, and its federal-plus-state income tax rate was 20%.2020 data is expected to remain unchanged except for one item, depreciation, which is expected to increase by $140,000. By how much will the net income change as a result of the change in depreciation?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!