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XYZ Company, a 'for-profit' business, had revenues of $12 million in 2022. Expenses other than...

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Accounting

XYZ Company, a 'for-profit' business, had revenues of $12 million in 2022. 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.
Deprecla.un originally was $1.5 million; however, now the compar, nas decided to be more conservative in its depreciation vits capital assets. xYZ now has $750,000 in depreciation expense instead of $1.5 million.
Based on this change in depreciation expense, what would XYZ's net income be?
Choice: $875,000
Choice: $1,350,000
Choice: $1,500,000
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