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 25%. 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.

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine