(Solved): See the explanation below to work the problem. XYZ Company, a 'for-profit' business, had revenues o ...

See the explanation below to work the problem. XYZ Company, a 'for-profit' business, had revenues of $\$16$ 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. Depreciation originally was $\$2$ million; however, a change in the depreciation schedule (still within GAAP) has now made the depreciation expense DOUBLE. Based on this change in depreciation expense, what would XYZ's have to pay in taxes? Choice: $\$0$ Choice: $\$800,000$ Choice: $\$1,000,000$ Choice: $\$1,350,000$