Module 2: Part 1 - Income Statement and Change in Equity HW Question #10 See the explanation below to work the problem. XYZ Company, a 'for-profit' business, had revenues of $12 million in 2017. Expenses other than depreciation totaled 75 percent of revenues. XYZ Company, must pay taxes at a rate of 40 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. Depreciation originally was $1.5 million; however, a change in the depreciation schedule (still within GAAP) has now made the depreciation expense DOUBLE. Based on this change in depreciation expense, what would XYZ's net income now be? Choice: $1,500,000 Net income? Choice: $3,000,000 Choice: $0 Choice: Not enough information to tell