Sharpe Machining Company purchased industrial tools costing $140,000, which fall in the 3-year property class under MACRS. Use Appendix A and Exhibit 16-9 for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare a schedule of depreciation deductions assuming: a. The firm uses the accelerated depreciation schedule specified by MACRS. b. The firm uses the optional straight-line depreciation method and the half-year convention. 2. Calculate the present value of the depreciation tax shield under each depreciation method listed in requirement 1 . Sharpe Machining Company's after-tax hurdle rate is 10 percent, and the firm's tax rate is 30 percent. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Calculate the present value of the depreciation tax shield under each depreciation method listed in requirement 1. Sharpe Calculate the present value of the depreciation tax shieid under each' de calculations and final answers to the nearest dollar amount.) Exhibit 16-9 Selected MACRS Depreciation Percentages as Computed by the IRS (incorporates half-year convention, also incorporates recent modifications in the tax laws) Source: IRS Publicotion 946, entitled "How to Depreciote Property