please help with A and B
MACRS depreciation expense and accounting cash flow Pavlovich 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 $77,500 and a cost recovery period of 5 years. They will be depreciated using the MACRS schedule Corporate tax rates are given 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? by the amount oferecer a. The depreciation expense they will be able to claim this year is $ . (Round to the nearest dollar) Enter your answer in the answer box and then click Check Answer. - part Clear All Check Answer (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 10 years 33% 14% 10% 45% 25% 18% 15% 19% 18% 14% 12% 12% 12% 9% 8% 7% 6% 20% 32% 7% NOWN Print Done * More Info SO (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Corporate Tax Rate Schedule Tax calculation Range of taxable income Base tax (Marginal rate x Amount over base bracket) $0 to $50,000 (15% X amount over $0) 50,000 to 75,000 7,500 (25% X amount over 50,000) 75,000 to 100,000 13,750 (34% X amount over 75,000) 100,000 to 335,000 22,250 x amount over 100,000) 335,000 to 10,000,000 113,900 (34% amount over 335,000) 10,000,000 to 15,000,000 3,400,000 (35% amount over 10,000,000) 15,000,000 to 18,333,333 5,150,000 (38% X amount over 15,000,000) Over 18,333,333 6,416,667 (35% x amount over 18,333,333) (39% Print Done