Question: Show the capital cost allowances for each of these classes, and an annual total, for ErgoTech's first four years of business.

Short Case Studies ST8.1 In 2008, three recent Industrial Engineering graduates are considering setting up a new consulting company, ErgoTech Ltd., to provide services on ergonomic de- signs and evaluations. Initially, they expect to invest $7000 on furniture, photo- copier, and testing equipment (Class 8), $3500 on a computer including systems software (Class 50), $2400 on general and specialized software (Class 12), and $13,000 for a small car (Class 10) to visit clients. If the business grows as well as expected, they foresee the following property transactions over the coming years: Year 1: purchase additional ergonomics software for $800 Year 2: purchase a second computer for $4000, and specialized software for $1000 Year 3: sell the car for $6000 and purchase a van for $20,000 for ease of trans- porting testing equipment; sell the old photocopier for $1000, and buy a better model costing $2500 Year 4: sell the original computer for $500 (uninstalling all software except the sys- tems software); spend $2000 to upgrade the motherboard, RAM-and video card on the second computer, which will significantly improve its performance Short Case Studies ST8.1 In 2008, three recent Industrial Engineering graduates are considering setting up a new consulting company, ErgoTech Ltd., to provide services on ergonomic de- signs and evaluations. Initially, they expect to invest $7000 on furniture, photo- copier, and testing equipment (Class 8), $3500 on a computer including systems software (Class 50), $2400 on general and specialized software (Class 12), and $13,000 for a small car (Class 10) to visit clients. If the business grows as well as expected, they foresee the following property transactions over the coming years: Year 1: purchase additional ergonomics software for $800 Year 2: purchase a second computer for $4000, and specialized software for $1000 Year 3: sell the car for $6000 and purchase a van for $20,000 for ease of trans- porting testing equipment; sell the old photocopier for $1000, and buy a better model costing $2500 Year 4: sell the original computer for $500 (uninstalling all software except the sys- tems software); spend $2000 to upgrade the motherboard, RAM-and video card on the second computer, which will significantly improve its performance