Fix-It-Yourself, a rental equipment store, bought a jackhammer. The jackhammer costs ($ 8,000) oand is expected to

Question:

Fix-It-Yourself, a rental equipment store, bought a jackhammer. The jackhammer costs $\$ 8,000$ oand is expected to have a service life of six years. At the end of six years, the jackhammer can be sold for $\$ 2,000$. Fix-It-Yourself has a $30 \%$ tax rate. What is the annual depreciation expense? What is the annual tax savings from depreciation?

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