Question: only need c - h please thank you Markov Manufacturing recently cert 554.2 mtion to purchase some equipment ined in the manutlucture of dik arwes.
only need c - h please thank you Markov Manufacturing recently cert 554.2 mtion to purchase some equipment ined in the manutlucture of dik arwes. The tem aspects that this equipment will have a unetu te of five years, and its marginal corporate tax rate is 27%. T a. What is the annual depreciation expense sociated with the equipment? b. What is the annual depreciation tax thield? c. Rather than straight in apreciation, suppose Marrow will use the MACRS depreciation method for the five-year ife of the property Calculate the depreciation tax shield each year for this equipment under this accelerated depreciation schedule d. Marlow has a choice between thine and MACRS depreciation schedules, and its marginal corporate tax rate is expected to remain content, which schedule should it choose? Why? How might your answer to part (d) charge Marownice is that its marginal corporate tax rate will rase Substantially over the next five years? Under the TCJA 2017 Markov has the option to take 100% Bonus depreciation in the year in which the equipment is put into use. This means that in that year, Markow would take the full depreciation expense equivalent to the cost of buying them. Rather than thine depreciation, suppose Markov will use the bonus depreciation method Calculate the depreciation tax shield each year for this equipment with bonus depreciation. . Mahas a choice by straighine, MACRS and bonus depreciation schedules, and its marginal corporate tax rate is expected to remain constant, which schedule should choose? Why? . How might your answer to port (9) change if Markov anticipate that its marginal corporate tax rate will increase substantially over the next five years? Note: Asume that the polls into use in year 1
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