Trenton Fabrication Company purchased industrial tools costing $170,000, 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 ) (Round your final answers to the nearest dollar amount ) Apendix A is a Present Value Table Exhibit 16 9 is a MACRS table 1 Prepare a schedule of depreciation deductions assuming a The firm uses the accelerated depreciation schedule specified by MACRS Year Accelerated Depreciation 1 2 3 4 b The firm uses the optional straight line depreciation method and the half year convention Year Straight Line Depreciation 1 2 3 4 2 Calculate the present value of the depreciation tax shield under each depreciation method listed in part (1) Trenton Fabrication Companys after tax hurdle rate is 12 percent, and the firms tax rate is 30 percent Present Value of Depreciation Tax Shield Under MACRS Accelerated depreciation Under MACRS Straight line depreciation

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Trenton Fabrication Company purchased industrial tools costing $170,000, which fall in the 3-year property class under MACRS. Use Appendix A and Exhibit 16-9 for your

Trenton Fabrication Company purchased industrial tools costing $170,000, 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.). (Round your final answers to the nearest dollar amount.)

Apendix A is a Present Value Table. Exhibit 16-9 is a MACRS table

1. Prepare a schedule of depreciation deductions assuming:

a. The firm uses the accelerated depreciation schedule specified by MACRS

Year	Accelerated Depreciation
1
2
3
4

b. The firm uses the optional straight-line depreciation method and the half-year convention.

Year	Straight-Line Depreciation
1
2
3
4

2. Calculate the present value of the depreciation tax shield under each depreciation method listed in part (1). Trenton Fabrication Companys after-tax hurdle rate is 12 percent, and the firms tax rate is 30 percent.