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Please fill in the chart Ms T. Potts, the treasurer of Ideal China, has a problem The company has just ordered a new kiln for

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Ms T. Potts, the treasurer of Ideal China, has a problem The company has just ordered a new kiln for $580,000. Of this sum, $68,000 is described by the supplier as an installation cost. Ms. Potts does not know whether the company will need to treat this cost as a tax- deductible current expense or as a capital investment. In the latter case, the company could depreciate the $68.000 straight-line over five years How will the tax authority's decision affect the after-tax cost of the kiln? The tax rate is 25%, and the opportunity cost of capital is 8%. (Do not round Intermediate calculations. Round your answers to the nearest whole dollar amount.) PV Tax shield Installation cost is expensed at the end of year 1 If installation cost is capitalized and depreciated over 5 years

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