The Nantell Corporation just purchased an expensive pieceof equipment. Assume th

The Nantell Corporation just purchased an expensive pieceof equipment. Assume that the firm planned to depreciate theequipment over 5 years on a straight-line basis but Congress thenpassed a provision that requires the company to depreciatethe equipment on a straight-line basis over 7 years. Otherthings held constant which of the following will occur as a resultof this Congressional action? Assume that the company uses the samedepreciation method for tax and stockholder reporting purposes.