1. Rad Power Bikes faces a corporate tax rate of 34%. Its CEO, Mike Radenbaugh is adding an e-bike product line that will boost annual sales by $337,000 and expenses by $232,000. According to Radenbaughs estimates, the e-bike project entails $141,000 in fixed assets that will be fully depreciated straight-line to a zero book value over the projects 6-year life. The depreciation tax shield is:

Multiple Choice

• $7,990

• $19,097

• $35,700

• $13,147

• $15,510

2.

Three-year MACRS Table:

Year	Depreciation Percentage
1	33.3%
2	44.45%
3	14.81%
4	7.41%

Using the above table, what is the amount of depreciation in Year 2 for a sneaker boxing device that Nike just purchased for $2,600,000?

Multiple Choice

• $1,155,700

• $866,667

• $385,060

• $866,580

• $192,660