Depreciation expense. Richardses' Tree Farm, Inc. has just purchased a new aerial tree trimmer for $$89,000.$ Calculate the depreciation schedule using a seven$-$year life $($for the property class category of a single$-$purpose agricultural and horticultural structure from Table $10\mathrm{.}3)$ for both straight$-$line depreciation and MACRS, $.$ Use the half$-$year convention for both methods. Compare the depreciation schedules before and after taxes using a $40\%$ tax rate. What do you notice about the difference between these two methods?

Using a seven$-$year life, straight$-$line depreciation, and the half$-$year convention for the first and last years, what is the annual depreciation of the trimmer?

$($Round to the nearest dollar.$)$

Using a seven$-$year life, straight$-$line depreciation, and the half$-$year convention for the first and last years, what is the depreciation for the first and last years?

$($Round to the nearest dollar.$)$

Using a seven$-$year life and MACRS depreciation, $,$ what is the annual depreciation of the trimmer for year $1?$

What is the annual depreciation of the trimmer for year $2?$

$($Round to the nearest dollar.$)$

Vhat is the annual depreciation of the trimmer for year $3?$

$($Round to the nearest dollar.$)$

Vhat is the annual depreciation of the trimmer for year $4?$

What is the annual depreciation of the trimmer for year $?$

$($Round to the nearest dollar.$)$

What is the annual depreciation of the trimmer for year $6?$

$($Round to the nearest dollar.$)$

What is the annual depreciation of the trimmer for year $7?$

$ $($Round to the nearest dollar.$)$

What is the annual depreciation of the trimmer for vear $8?$

Compare the depreciation schedules before and after taxes using a $40\%$ tax rate. What do you notice about the difference between these two methods? $($Select the best response.$)$

A$.$ The difference is that the MACRS moves up the tax shield to the early years of depreciation yet the total tax shield is the same under both depreciation schedules.

B$.$ The difference is that the Straight$-$line moves up the tax shield to the early years of depreciation yet the total tax shield is the same under both depreciation schedules.

Data table

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$\backslash$table$[[$Year$,3-$Year,$5-$Year,$7-$Year,$10-$Year$],[1,33\mathrm{.}33\%,20\mathrm{.}00\%,14\mathrm{.}29\%,10\mathrm{.}00\%$