Sharpe Machining Company purchased industrial tools costing $200,000, 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. Future Value and Present Value Tables Table 1 Pamo VI Prod4 * 1 4A of $1001+ , + 1: 271 23 ++ * * 42 t 2 J+ + ++ ++ THE L Series of Table II tr a Ordry 44$ 4- +4 1938 4 4E4 g E 13 ? : E72434413 34 7 4 4 A f7f * Fe/ r E Y%B475737E E # 0 4 g 24.4 4 3} 14g 7% 9c4E|} 40 >> 1411 Table III Presenta $100 | # # # ## % # % | # # #| # # # # # # # a 8 f; % # # # g#* ## # # # # # 6 # #* | (5 (+g + 4 3 Table TV Present Series $1.00 how 1 MAN a r* { 4# | 01 - 01 0F0 1) * 7 07 33 + ++ *# % 46 4440 144 g 2022 4_ 24 2 47 4 204W44? 1 [48C E: )19449/ 1+ ) 1 141 1 4:/ 41111 7624+ + 4944 + 4+ 1 3 34 # 11+ 3 fr g| Fa 0 40 /1?3461434 34.4 3CE! L73 5 747 . *# +E3% 344 # 07 38 34 324 1 243 207 4 A # 247 9 3 44 4 67 3 4 Of 3 344 # 3/A4 049 = 4 E061118/ 94$0 4037 34 35 3.13 31 ? ++ + t #*4 (494 .dc@ 3 4 /g 44 447/ 3/3* / 3/ 34 31/ 544) jia /414444? 4418) 18 /8047 #4/ 1t? ?f 0 9 + 224477f0fff2 $ 4E14 #22 34 34 *# 4 32 1,4*# / fr #/t ,4? htret #* 414 /rp : + +4 | L] 4 0E1t4 14t ? 57 153 4=!] .4 4.14 34 3 2 .5 331 } / }.+ t // krg /x19 t+ A+ |**# 14pr) * at/ + wh 04/ 4r /? a 1/5 +7 454. t*# 3 j/ Ac/ Req 1A Req 1B Req 2 The firm uses the accelerated depreciation schedule specified by MACRS. (Round your final answers to the nearest dollar amount.) Accelerated Depreciation Year 1 Reg 1A Req 1B Req 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.) Year Straight-Line Depreciation Req 1A Req 1B 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 10 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