Part 1: Depreciation: a Memorial Hospital purchases three machines: Machine A for $325,000 with an estimated salvage value of $45,000 and a useful life of 7 years. Machine B for $990,000 with an estimated salvage value of $75,000 and a useful life of 12 years. Machine C for $665,000 with an estimated salvage value of $35,000 and a useful life of 6 years. What is the depreciation for each machine and the total annual depreciation? Annual Depreciation: Machine A Machine B Machine C Total Annual Depreciation Part 2: Depreciation Shield: Assume Memorial Hospital has a 26% tax rate - what is the total depreciation shield each year? Tax Rate Depreciation Shield