Mind Challenge, Inc., publishes innovative science textbooks for public schools. The companys management recently acquired the following two new pieces of equipment.

• Computer-controlled printing press: cost, $279,000; considered to be industrial equipment; expected useful life, 12 years.
• Duplicating equipment to be used in the administrative offices: considered to be office equipment; cost, $61,200; expected useful life, six years.

The company uses straight-line depreciation for book purposes and the MACRS accelerated depreciation schedule for tax purposes. The firms tax rate is 30 percent; its after-tax hurdle rate is 10 percent. Neither machine has any salvage value. Use Appendix A and Exhibit 16-9 for your reference. (Use appropriate factor(s) from the tables provided.) Required: For each of the publishing companys 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.