Answer:
See below.
Explanation:
According to the data, current income before tax is as follows,
Income before tax = (10,500-6250-1300-325) = $2,625
So last year the Income after tax would be = (2625 - (2625*0.35) = $1,706.25
This year the depreciation rises by 1,250 so the total change in net income is as follows,
Income before tax for this year = 2625-1240 = $1385
After tax income = 1385 - (1385*0.35) = $900.25
So the total change in net income over the two years
= 1706.25 - 900.25 = Fall by $806
Hope that helps.