Question
The following information has been gathered regarding Williams Investing, which uses the
straight-line method for depreciation.
Depreciable life of 8 years on its assets.
Net book value of assets is $ 40 million.
Accumulated depreciation is $ 28 million.
Salvage value is $12 million.
It recently revised the estimates for the remaining useful life of its assets from 4 years to 6 years.
Net income before the change is $13 million. The effective tax rate for the firm is 40 percent. |
Net income for Williams Investing will increase by:
A．
B．
C．