Examine the information provided in E8-2 and respond to parts (a), (b), and (c) Assuming Namaka will use declining balance depreciation at a rate of 40 percent for the display cases.

Data from E8-2

Namaka Inc. (Namaka) recently purchased new display cases for its retail stores. The display cases cost $150,000, taxes were $22,000 (of which $19,500 is refundable), delivery cost $5,000, and set-up cost $8,000. Namaka's management expects to use the display cases for five years, at which time they will be replaced. Management uses straight-line depreciation on assets of this type and estimates that the new display cases have a residual value of $5,000.