(Solved): Depreciation expense. Brock Florist Company buys a new delivery truck for $37,000. It is classifie ...

Depreciation expense. Brock Florist Company buys a new delivery truck for $\$37,000$. It is classified as a light-duty truck. a. Calculate the depreciation schedule using a five-year life, straight-line depreciation, and the half-year convention for the first and last years. b. Calculate the depreciation schedule using a five-year life and MACRS depreciation, c. Compare the depreciation schedules from parts (a) and (b) before and after taxes using a $30\%$ tax rate. What do you notice about the difference between these two methods? Data table MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon $?$ to download the data from this table a. Using a five-year life, straight-line depreciation, and the half-year convention for the first and last years, what is the annual depreciation of the truck? $\$$ (Round to the nearest dollar.) What is the depreciation for the first and last years? I (Round to the nearest dollar.) b. Using a five-year life and MACRS depreciation, , what is the annual depreciation of the truck for year 1 ? $\$$ (Round to the nearest dollar.) What is the annual depreciation of the truck for year $2?$ $\$$ (Round to the nearest dollar.) What is the annual depreciation of the truck for year 3 ? $\$$ (Round to the nearest dollar.) What is the annual depreciation of the truck for year 4 ? What is the annual depreciation of the truck for year $5?$ $\$$ (Round to the nearest dollar.) What is the annual depreciation of the truck for year $6?$ (Round to the nearest dollar.) c. Compare the depreciation schedules from parts (a) and (b) before and after taxes using a $30\%$ tax rate. What do you notice about the difference between these two methods? (Select the best response.) A. The difference is that the MACRS depreciation moves up the tax shield to the early years of depreciation yet the total tax shield is the same under both depreciation schedules. B. The difference is that the straight-line method of depreciation moves up the tax shield to the early years of depreciation yet the total tax shield is the same under both depreciation schedules.