Exercise 16-33 Depreciation Tax Shield (Section 2) (LO 16-4, 16-5) Sharpe Machining Company purchased industrial tools costing $170,000, which fall in the 3-year property class under MACRS. Use Appendix A and Exhibit 16-9 for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare a schedule of depreciation deductions assuming: a. The firm uses the accelerated depreciation schedule specified by MACRS. b. The firm uses the optional straight-line depreciation method and the half-year convention. 2. Calculate the present value of the depreciation tax shield under each depreciation method listed in requirement 1. Sharpe Machining Company's after-tax hurdle rate is 12 percent, and the firm's tax rate is 30 percent. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 The firm uses the accelerated depreciation schedule specified by MACRS. (Round your final answers to the nearest dollar amount.) Year 1 2 3 4 Accelerated Depreciation