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Using the capital expenditures above, calculate the missing depreciation numbers for all 3 years. All equipment will...

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Accounting

Using the capital expenditures above, calculate the missingdepreciation numbers for all 3 years.

All equipment will be depreciated using the straight-linemethod. Everything in the table is purchased on January 1 of thefirst year (2019)

In addition, on June 30 of the 3rd year, the two iMac computersare sold for a total of $500 and two new better computers arepurchased for $4,000 total.

Capital Improvements
ExpenditureCostUseful Life (Years)
Leasehold Improvements$15,00015
Telephone System$2,0007
Two iMacs with Software$5,5005
Epson All in One Printer$1507
Aficio MPC7500$37,8005
Folding and Binding Machines$4005
Desks$5,0007
Copier$3,0007

Answer & Explanation Solved by verified expert
3.8 Ratings (426 Votes)

Expenditure Cost Useful Life (Years) Depreciation Year1 Depreciation Year2 Depreciation Year3
Leasehold Improvements $15,000 15 $1,000 $1,000 $1,000
Telephone System $2,000 7 $286 $286 $286
Two iMacs with Software $5,500 5 $1,100 $1,100 $550 (for half year)
Epson All in One Printer $150 7 $21 $21 $21
Aficio MPC7500 $37,800 5 $7,560 $7,560 $7,560
Folding and Binding Machines $400 5 $80 $80 $80
Desks $5,000 7 $714 $714 $714
Copier $3,000 7 $429 $429 $429
New Computer              4,000                     -                       -  

For Depreciation on new computer , we need estimated life

Two iMac - Cost              5,500
-Depreciation Year 1            (1,100)
-Depreciation Year 2            (1,100)
-Depreciation Year 3 (till june)                (550)
Book Value on date os sale              2,750
Sales Value                  500
Loss on Sale            (2,250)

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