MACRS depreciation expense and accounting cash flowPavlovich Instruments, Inc., a maker of precision telescopes, expects to report pretax income of

$425,000

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

$82,000

and a cost recovery period of 5 years. They will be depreciated using the MACRS schedule

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. Corporate tax rates are given

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.

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?

Question content area bottom

Part 1

a. The depreciation expense they will be able to claim this year is

$enter your response here.

(Round to the nearest dollar.)