-core: 0.5 of 1 pt 2 of 8 (7 complete) HW Score: 57.82%, 4.63 of * P4-3 (similar to) Question Help MACRS depreciation expense and accounting cash flow Pavlovich Instruments, Inc., a maker of precision telescopes, expects to report pretax income of $433,000 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 $84,800 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. If the 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) Homework: Chapter 4 Home Score: 0.5 of 1 pt 2) P4-3 (similar to) MACRS depreciation expense and accounting cash flow Pavlovich $433,000 this year. The company's financial manager is considering the t cost of $84,800 and a cost recovery period of 5 years. They will be deprec a. If the firm purchases the grinders before year-end, what depreciation ex b. If the firm reduces its reported income by the amount of the depreciatior a. The depreciation expense they will be able to claim this year is $ (R ounting cash flow Pavlovich Instruments, Inc., a maker of precision telescopes, exp cial manager is considering the timing of a purchase of new computerized lens grinders od of 5 years. They will be depreciated using the MACRS schedule . Corporate tax more year-end, what depreciation expense will it be able to claim this year? e by the amount of the depreciation expense calculated in part a, what tax savings will res be able to claim this year is $ (Round to the nearest dollar.) Question Help -., a maker of precision telescopes, expects to report pretax income of mase of new computerized lens grinders. The grinders will have an installed e MACRS schedule A. Corporate tax rates are given be able to claim this year? alculated in part a, what tax savings will result? nearest dollar.) milar tal More Info 10 years 7% (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 12% 12% 12% 12% 9% 9% 5 5% 9% 6 8% 9% 7% 7 4% 6% 8 6% 9 6% 10 4% 11 Totals 100% 100% 100% 100% "These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention or answ Print Done aining he company's financial manager is considering the timing of a purchase of new computerized lens grinders. The grinders will have cost recovery period of 5 years. They will be depreciated using the MACRS schedule Corporate tax rates are given More Info ick on the icon here in order to copy the contents of the data table below into a spreadsheet.) Corporate Tax Rate Schedule Base tax + $0 + 7,500 + + Range of taxable income $0 to $50,000 50,000 to 75,000 75,000 to 100,000 100,000 to 335,000 335,000 to 10,000,000 10,000,000 to 15,000,000 15,000,000 to 18,333,333 Over 18,333,333 Tax calculation (Marginal rate X Amount over base bracket) (15% x amount over $0) (25% X amount over 50,000) (34% X amount over 75,000) (39% x amount over 100,000) (34% X amount over 335,000) (35% x amount over 10,000,000) (38% x amount over 15,000,000) (35% x amount over 18,333,333) + 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 + + + + Print Done in the answer box and then click Check Answer. CPACK ANSWOT Clear All ng the MACRS schedule. The tax rate is 3