Score: 0 of 10 pts 19 of 20 (14 complete) HW Score: 70%, 140 of 200 pts P 9-27 (similar to) Question Help Marko Manufacturing recently spent 515 4 million to purchase some equipment used in the manufacture of disk drives. The firm expects that this equipment will have a useful We of five years, and its marginal corporate tax rates 215. The company plans to use straight line depreciation What is the annual depreciation expense associated with this gent? b. What is the annual depreciation tax shield? c. Rather than straightine depreciation, suppose Markov will use the MACRS depreciation method for the five year of the property Calculate the depreciation tax shield each year for this equipment under this accelerated depreciation schedule d. if Markov has a choice between straight line and MACRS depreciation schedules, and is marginal corporate tax rate is expected to remain constant which schedule should it choose? Why? e. How might your answer to part (d) change i Markowanipates that is marginal corporate tax rate will increase substantially over the next five years? Under the TCJA of 2017, Marko has the option to take 100% Bonus deprecation in the year in which the equipment is put into use. This means that in that year, Markow would take the foldepreciation expense equivalent to the cost of buying the equipment Rather than straight Ine depreciation, suppose Markov will the bonus depreciation method Calculate the depreciation Bakshield each year for this equipment with bonus depreciation 9. Il Markow has a choice between two MACRS and bonus depreciation schedules, and its marginal corporate tax rate is expected to remain constant, which schedule should choose? Why? h. How might your answer to prchangel Markov anticipates that is marginal corporate tax rate will increase substantially over the five years? Note Assume that the went is put into use in year 1 a. What is the annual relation expense associated with this out? The depreciation expension Round to three decal places)