Question

Excel Imaging, Inc. bought new office furniture in the year 2012. The purchase price was 68,312 dollars and they also spent 14,147 additional dollars for installation. The furniture was put into use on March 20th, 2012. On May 14th, 2016, Excel Imaging, Inc. sold the office furniture for 36,003 dollars. Use the US accelerated depreciation schedule to calculate the total value of depreciation recorded in Excel Imaging, Inc's accounting books for years 2012 through 2016 (i.e. calculate the sum of depreciation recorded in each year for the years 2012 through 2016). (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas; do not round any values from the depreciation tables).

Answer 1

		Office Furniture Asset Class00.11 have 7 year recovery period
		Purchase Price	$68,312
		Installation cost	$14,147
		Total Depreciable asset value	$82,459
		Furnitures are place in service in first quarter
		Mid quarter convetion should be used
		Table A2 should be used.
		Year	1	2	3	4	5	6	7	8
	A	Depreciation Rate	25.00%	21.43%	15.31%	10.93%	8.75%	8.74%	8.75%	1.09%
	B=82459*A	Annual Depreciation	$20,614.75	$17,670.96	$12,624.47	$9,012.77	$7,215.16	$7,206.92	$7,215.16	$898.80
	Year	Accounting Year	Depreciation
	1	2012	20614.75
	2	2013	17670.96
	3	2014	12624.47
	4	2015	9012.77
	5	2016	3607.58	(7215.16*(2/4)	(Mid quarter convention , depreciation for two quarters)