Last year Tiemann Technologies reported $10,300 of sales, $6,450 of operating costs other than depreciation, and $1,400 of depreciation. The company had no amortization charges, it had $4,800 of bonds that carry a 6.0% interest rate, and its federal-plus-state income tax rate was 35%. This year's data are expected to remain unchanged except for one item, depreciation, which is expected to increase by $700. 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.   Group of answer choices   -455.00 -432.25 -500.50 -477.75 -409.50

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.