. . Innovative science textbooks for public schools. The company's man- Problem 16-48 agement recently acquired the following two new pieces of equipment. MACRS Depreciation Present Value of Tax Shield (Sec- Computer-controlled printing press cost. $250,000; considered to be industrial equipment: tion 2) expected useful life, 12 years. (LO 16-4, 16-5) Duplicating equipment to be used in the administrative offices, considered to be office equipment: Computer controlled printing cost, $60.000; expected useful life, six years. press, present value of tax shield, 554095 The company uses straight-line depreciation for book purposes and the MACRS accelerated depre- ciation schedule for tax purposes. The firm's tax rate is 30 percent; its after-tax hurdle rate is 10 percent. Neither machine has any salvage value. For each of the publishing company's new pieces of equipment: 1. Prepare a schedule of the annual depreciation expenses for book purposes. 2. Determine the appropriate MACRS property class. 3. Prepare a schedule of the annual depreciation expenses for tax purposes. 4. Compute the present value of the depreciation tax shield. (Round to the nearest dollar in each calculation.) Required