Question

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

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

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

Capital Improvements

Expenditure	Cost	Useful Life (Years)
Leasehold Improvements	$15,000	15
Telephone System	$2,000	7
Two iMacs with Software	$5,500	5
Epson All in One Printer	$150	7
Aficio MPC7500	$37,800	5
Folding and Binding Machines	$400	5
Desks	$5,000	7
Copier	$3,000	7

Answer 1

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)