Q No $4$: Smart Hardware purchased new shelving for its store on Jan $1,2021.$ The shelving is

expected to have a $5-$year life and $$400$ residual value. The following expenditures were

associated with the purchase:

Cost of the shelving $......................................$ $$12,000$

Freight charges $....................................520$

Sales taxes $.......................................780$

Installation of shelving $...........................................2,700$

Cost to repair shelf damaged during installation

$.\mathrm{.}400$

Instructions

a$.$ Compute total cost of the smart Hardware

b$.$ Identify the above expenditures as a capital or refvenue

c$.$ Compute depreciation expense $($for the years $2021$ through $2022)$ under each depreciation

method listed below:

Straight$-$line method.

Double declining$-$balance.

MACRS Method