Problem: BC Corporation is not having a good year. Sally and Ed are expecting the company to absorb a $40,000 loss. As a result, they have decided to depreciate $130,000 of equipment using the straight-line method for their books and using the 200% MACRS for tax purposes. Therefore, depreciation for the equipment will show up as $17,000 on their books and as $26,000 for tax. They want to know what tax benefits, if any, BC Corporation will realize because of their changes.