Mean Beans, a local coffee shop, has the following assets on January 1, 2023. Mean Beans prepares annual financial statements and has a December 31, 2023 year-end. The company's depreciation policy is to use the straight-line method to depreciate its assets

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1. On January 1, 2023, purchase equipment costing $20,200 with an estimated life of five years. Mean Beans will scrap the equipment after five years for $0.
2. On July 1, 2023, purchase furniture (tables and chairs) costing $21,500 with an estimated life of ten years. Mean Beans estimates that it can sell the furniture for $4,900 after ten years.
3. On January 1, 2021, Mean Beans had purchased a car costing $19,250 with an estimated life of eight years. Mean Beans estimates that it can sell the car for $3,850 after eight years.

Required:

1-a. For each transaction, calculate the current year's annual depreciation expense.

Mean Beans, a local coffee shop, has the following assets on January 1, 2023 Mean Beans prepares annual financial statements and has a December 31,2023 year-end. The company's depreciation policy is to use the straight-line method to depreciate its assets. a. On January 1, 2023, purchase equipment costing $20,200 with an estimated life of five years, Mean Beans will scrap the equipment after five years for $0. b. On July 1.2023, purchase furniture (tables and chairs) costing $21,500 with an estimated life of ten years, Mean Beans estimates that it can sell the furniture for $4,900 after ten years. c. On January 1,2021, Mean Beans had purchased a car costing $19.250 with an estimated life of eight years. Mean Beans estimates that it can sell the car for \$3,850 after eight years. Required: Required: 1-a. For each transaction, calculate the current year's annual depreciation expense