7. [Tax effect of restructuring] In 1998, Silicon Graphics [SG!] made the following announcements: 1998; restructuring charges of $144 million, including a 547 million write-down of operating assets. 1999: $4.2 million of operating asset write-downs and a $16 milhon write-down of capitalized internal use software 2000: operating assel write-downs of $26.6 million. The company reported the following deferred tax assets ($ thousands) Years ended June 30 Depreciation 1997 1998 $57.675 $40.435 1999 2000 $49,226 $37,659

a. Using the U.S. statutory tax rates of 34% for 1998 and 35% for 1999 and 2000, estimate the changes in 1998. 1999, and 2000 deferred tax assct balances resulting from the write- downs of operating assets.