The change in depreciation methods results in net income increasing by $3.25 million ($5 million × (1-0.35)) and total assets increasing by $5 million. Without the change in depreciation methods SCI would have reported:

Depreciation expense	$30 million	($25 + $5)
Net income	$31.75 million	($35 – $3.25)
Total assets	$245 million	($250 – $5)
Shareholder’s equity	$191.75 million	($195 − $3.25)

Note that assets would have been lower by $5 million due to the accelerated depreciation and equity would be lower by $3.25 million ($5 × (1 − 0.35)) due to lower retained earnings. In order to balance the $5 million reduction in assets, equity will fall by $3.25 million and tax liabilities will fall by $1.75 million. Therefore, ROA would have been 12.96% ($31.75 / $245) and ROE would have been 16.56% ($31.75 / $191.75).