Question 2:

Andrea, a cash method taxpayer, starts her company (an LLC) in 2022. Since her company is new, she has to purchase many items for the business. Below are the list of items Andrea purchased in 2022:

Date Purchase	Item	Cost	Note
2/05/2022	Computers	$50,000
4/13/2022	Furniture	$10,000
7/7/2022	Equipment	$120,000
11/29/2022	Car	$35,000	To use as the delivery vehicle

What is Andreas total depreciation expenses in 2022? Show details calculation and explanation. Based on section 32 of Income Tax Act 1962, depreciation rate is as follows:

Computer=40%

Furniture=10%

Equipment=15%

Car=15%

Total Depreciation=

Computer= 50,000*40%= $20,000

Furniture=10,000*10%=1000

Equipment=120,000*15 (confused)

What is Andreas total depreciation expenses in the next year (2023)? Show details calculation and explanation.