Sharpe Machining Company purchased industrial tools costing $190,000, 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 8 percent, and the firm's tax rate is 30 percent. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 The firm uses the accelerated depreciation schedule specified by MACRS. (Round your final answers to the nearest dollar amount.) Year Accelerated Depreciation 1 2 3 Reg 1B > Sharpe Machining Company purchased Industrial tools costing $190,000, which fall in the 3-year property class under MACRS. Use Arpendix 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 8 percent, and the firm's tax rate is 30 percent. Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 2 The firm uses the optional straight-line depreciation method and the half-year convention. (Round Intermediate calculations and final answers to the nearest dollar amount.) Straight-Line Depreciation Year 1 2 3 4 Sharpe Machining Company purchased industrial tools costing $190,000, which fall in the 3-year property class under MACR 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 8 percent, and the firm's tax rate is 30 percent. Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 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 8 percent, and the firm's tax rate is 30 percent. (Round intermediate calculations and final answers to the nearest dollar amount.) Present Value of Depreciation Tax Shield Under MACRS Accelerated depreciation Under MACRS Straight-line depreciation Reg 1B
