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MACRS depreciation expense and accounting cash flow Pavlovich Instruments, Inc, a maker of precision teloscopes, expects fo report predax income of $430,000 this year. The

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MACRS depreciation expense and accounting cash flow Pavlovich Instruments, Inc, a maker of precision teloscopes, expects fo report predax income of $430,000 this year. The company's financial manoper is considering the timing of a purchase of rew computecized lens grinders. The grinders wa have an installed cost of 577,700 and a cost recovery period of 5 years. They will be depreciated using the MACRS schedule Corporate tax fates are given a. Ht the firm purchases the grinders before year-end, what depreciation expense wit it be able to claim this yoar? b. If the firm reduces its reported income by the amount of the depeciation expense calculated in part a, what tax savings wall rosult? a. The depteciabion oxpense they will be able to claim this year is 1 (Round to the nearest dollar.)

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