Baltimore Machinery bought special tooling equipment for $2.2 million. For financial reporting purposes, the estimated useful life is 5 years, with no residual value. For tax purposes, assume MACRS specifies a 3-year, DDB depreciation schedule. Baltimore Machinery uses the straight-line depreciation method for reporting to shareholders. Requirements 1. Explain the two factors that account for the acceleration of depreciation for tax purposes. 2. Compute the first year's depreciation (a) for shareholder reporting, and (b) for tax purposes. (Ignore complications in the tax law.) Requirement 1. Explain the two factors that account for the acceleration of depreciation for tax purposes. Acceleration of depreciation for tax purposes is caused by and by in the first year. Requirement 2. Compute the first year's depreciation (a) for shareholder reporting, and (b) for tax purposes. (Ignore complications in the tax law.) Select the formula needed and then calculate the first year's depreciation (a) for shareholder reporting, and (b) for tax purposes. (Enter amounts in dollars rounded to the nearest whole dollar.) First Year's Depreciation (a) For shareholder reporting = = (b) For tax purposes =