of 2 Required Information. [The following Information applies to the questions displayed below] While completing undergraduate school work in information systems, Dallin Bourne and Michael Banks decided to start a technology support company called eSys Answers. During year 1, they bought the following assets and incurred the following start-up fees: 3 points Year 1 Assets Computers (5-year) office equipment (7-year) Furniture (7-year) Purchase Date October 30, Year 1 October 30, Year 1 October 30, Year 1 October 30, Year 1 Basis $15,280 10,000 3,400 17,360 eBook Print References Start-up costs In April of year 2, they decided to purchase a customer list from a company providing virtually the same services, started by fellow Information systems students preparing to graduate. The customer list cost $10,360, and the sale was completed on April 30. During their summer break, Dallin and Michael passed on intership opportunities in an attempt to really grow their business into something they could do full time after graduation. In the summer, they purchased a small van (for transportation, not considered a luxury auto) and a pinball machine (to help attract new employees). They bought the van on June 15. Year 2, for $17,000 and spent $3.200 getting it ready to put into service. The pinball machine cost $4,200 and 1 was placed in service on July 1. Year 2 Year 2 Assets Van Pinball machine (7-year) Customer 1st Purchase Oate June 15, Year 2 Basis 320,200 July 3, Year April 30, Year 4,2ee 10.360 Assume that eSys Answers does not claim any $179 expense or bonus depreciation. (Use MACRS 12 Table 3 Table 4 and Table 5) (Round your intermediate calculations and final answers to the nearest whole dollar emount) 3 1 Part 1 of 2 [The following information applies to the questions displayed below] While completing undergraduate school work in Information systems, Dallin Bourne and Michael Banks decided to start a technology support company called eSys Answers. During year 1, they bought the following assets and incurred the following start-up fees: Boints eBook Print Year 1 Assets office equipment (7-year) Computers (5-year) Furniture (7-year) Start-up costs Purchase Date: Bacis October 30, Year 1 October 30, Year 1 October 30, Year 1 October 30, Year 1 $15,200 10,000 3,400 17,360 In April of year 2, they decided to purchase a customer list from a company providing virtually the same services, started by fellow Information systems students preparing to graduate. The customer list cost $10,360, and the sale was completed on April 30. During their summer break, Dallin and Michael passed on Internship opportunities in an attempt to really grow their business into something they could do full time after graduation. In the summer, they purchased a small van (for transportation, not considered a luxury auto) and a pinball machine (to help attract new employees). They bought the van on June 15. Year 2, for $17,000 and spent $3,200 getting it ready to put into service. The pinball machine cost $4,200 and was placed in service on July 1, Year 2 eferences Van Year 2 Assets Pinball machine (7-year) Customer list Purchase Date June 15, Year 2 July 1, Year 2 April 30, Year 2 Basis $20,200 4,200 10,360 Assume that eSys Answers does not claim any $179 expense or bonus depreciation. (Use MACRS Table 1 Table 2 Table 3. Table 4 and Table 5) (Round your Intermediate calculations and final answers to the nearest whole dollar amount.) 3 points Required: a. What are the maximum cost recovery deductions for eSys Answers for Year 1 and Year 22 c. What is eSys Answers' basis in each of its assets at the end of Year 2? eBook Complete this question by entering your answers in the tabs below. Req A Req C Print References What are the maximum cost recovery deductions for eSys Answers for Year 1 and Year 27 Recovery Deduction Year 1 Year 2 Reg C > 3 Req A Req C points What is eSys Answers' basis in each of its assets at the end of Year 27 eBook Pring References Adjusted Basis Asset Original Basis Immediate Expense Year 1 Cost Recovery Year 2 Cost Recovery Computer Equipment Office Equipment Furniture Start-up costs Van Pinball machine Customer List Totals Year 2 Ending Basis