Assume a $$250,000$ piece of equipment is purchased and placed in service during $2024.$ The taxpayer

elects to use bonus depreciation on this asset. For taxable years after $2022,$ bonus depreciation created by

the Tax Cuts and Jobs Act of $2018$ is being phased out $20\%$ each year. Thus, in $2024$ the taxpayer can

deduct $60\%$ of this cost of the asset in $2023$ under the bonus deprecation provision. The remaining cost

of the asset is depreciated for tax purposes according the MACRS depreciation schedule for $5-$year

property $($using half$-$year convention$).$ The depreciation rates are:

Year $120\mathrm{.}00\%$

Year $232\mathrm{.}00\%$

Year $319\mathrm{.}20\%$

Year $411\mathrm{.}52\%$

Year $511\mathrm{.}52\%$

Year $65\mathrm{.}76\%$

$17.$ Compute the bonus deprecation amount that can be deducted in $2024.$

$18.$ Compute the depreciation deduction for $2024$ on the portion of the asset not eligible for bonus

depreciation.

$19.$ Assuming all tax$-$related cash follows occurs at the end of the year, find the present value of the tax

savings from the bonus depreciation if the after$-$tax discount rate is $8\%($i$.$e$.,$ the rate used to find

the present value$).$

$20.$ Find the present value of the tax savings from the MACRS depreciation for $2024$ through $2029$ for

that cost of the asset not eligible for bonus depreciation if the after$-$tax discount rate is $8\%$