Mind Challenge, Inc., publishes innovative science textbooks for public schools. The company’s management  recently acquired the following two new pieces of equipment.
• Computer-controlled printing press: cost, $250,000; considered to be industrial equipment;  expected useful life, 12 years.
• Duplicating equipment to be used in the administrative offices: considered to be office equipment;  cost, $60,000; expected useful life, six years.
The company uses straight-line depreciation for book purposes and the MACRS accelerated depreciation  schedule for tax purposes. The firm’s tax rate is 30 percent; its after-tax hurdle rate is 10 percent.  Neither machine has any salvage value.

Required: 

For each of the publishing company’s new pieces of equipment:
1. Prepare a schedule of the annual depreciation expenses for book purposes.
2. Determine the appropriate MACRS property class.
3. Prepare a schedule of the annual depreciation expenses for tax purposes.
4. Compute the present value of the depreciation tax shield.