30

***READ And follow all directions***

Please answer questions with the answers and put the answers in the picture where they belong

Answers only

Please dont make it confusing

Please be clear

Please write or type neatly

MACRS depreciation expense and accounting cash flow Pavlovich Instruments, Inc., a maker of precision telescopes, expects to report pretax income of $437,000 this year. The company's financial manager is considering the timing of a purchase of new computerized lens grinders. The grinders will have an installed cost of $75,300 and a cost recovery period of 5 years. They will be depreciated using the MACRS schedule. Corporate tax rates are given a. If the firm purchases the grinders before year-end, what depreciation expense will it be able to claim this year? b. Ifthe firm reduces its reported income by the amount of the depreciation expense calculated in part a, what tax savings will result? a. The depreciation expense they will be able to claim this year is (Round to the nearest dollar.) . The tax savings will be SO (Rand to the nearest dollar)