Freedom Corporation acquired a fixed asset at a cost of \(\$ 100,000\). The estimated life was four years, and there was no estimated salvage value. Assume a relevant interest rate of 8 percent and an income tax rate of 40 percent. The present value of \(\$ 1\) at 8 percent is as follows:

Required.
What is the present value of the tax benefits resulting from using sum-of-the-years'digits depreciation as opposed to straight-line depreciation on this asset?

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Number of Periods Present Value 1 2 .926 .857 3 .794 4 .735