Required information (The following information applies to the questions displayed below.) Bob and Michael started a technology support company called eSys Answers. During year 1, they bought the following assets (placed in service on date of purchase) and incurred the following start-up fees: Year 1 Assets Computers (5-year) Office equipment (7-year) Furniture (7-year) Start-up costs Purchase Date October 30, Y1 October 30, 41 October 30, y1 October 30, y1 Basis $ 15,000 10,000 3,000 17,000 In year 1, they elected to expense the start-up costs to the maximum extent possible. Note: immediate expensing reduces basis. On April 30, year 2, they purchased a customer list (a Section 197 intangible) for $10,000 from a company providing virtually the same services. During the summer of year 2, they purchased a small van (for transportation, not considered a luxury auto) and a business-use machine (7-year life). They bought the van and placed it in service on June 15, Y2, for $18,000. The machine cost $4,000 and was placed in service on July 1, Y2. Year 2 Assets Van Machine (7-year) Customer list Purchase Date June 15, Y2 July 1, Y2 April 30, Y2 Basis $ 18,000 4,000 10,000 Assume that eSys Answers does not claim any $179 expense or bonus depreciation. (Use MACRS Table 1, Table 2. Table 3. Table 4 and Ta 5.) (Do not round intermediat calculations Rou your answers to ar amount.) b. Complete eSys Answers' Form 4562 for year 1 (computers, office equipment, furniture & start-up costs only; do not include any of the assets acquired in year 2). Use "DOB" for double declining balance/200% DB. Parts I, II and V should be left blank. (Input all values as positive numbers. Disregard the year on the tax form; use 2019 tax rules regardless of year on tax form.) Part III MACRS Depreciation (Don't include listed property. See instructions.) Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2018 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here 17 Section B-Assets Placed in Service During 2018 Tax Year Using the General Depreciation System (c) Basis for (b) Month and year depreciation (d) Recovery (business/investment placed in service (e) Convention period (1) Method use onlySee instructions) (a) Classification of property (g) Depreciation deduction 15,000 5 year 7 year MQ MQ DOB DOB 750 464 19a 3-year property b 5-year property c 7-year property d 10-year property e 15-year property f 20-year property g 25-year property h Residential rental property i Nonresidential real property 25 yrs 27.5 yrs. 27.5 yrs. 39 yrs. S/L S/L MM S/L MM MM S/L MM S/L Section C-Assets Placed in Service During 2018 Tax Year Using the Alternative Depreciation System S/L S/L MM S/L MM S/L (See 20a Class life b 12-year C 30-year d 40-year 12 yrs. 30 yrs. 40 yrs. (c) Amortizable amount (d) Code section Part VI Amortization (b) Date (a) Description of costs amortization begins 42 Amortization of costs that begins during your 2018 tax year (see instructions): Start up costs 10/30/41 (e) Amortization period or percentage (f) Amortization for this year 12,000 X 195 15 Years 200 X 43 43 Amortization of costs that began before your 2018 tax year. 44 Total. Add amounts in column (f). See the instructions for where to report. UYA 200 Form 4562 (2018) Required information (The following information applies to the questions displayed below.) Bob and Michael started a technology support company called eSys Answers. During year 1, they bought the following assets (placed in service on date of purchase) and incurred the following start-up fees: Year 1 Assets Computers (5-year) Office equipment (7-year) Furniture (7-year) Start-up costs Purchase Date October 30, Y1 October 30, 41 October 30, y1 October 30, y1 Basis $ 15,000 10,000 3,000 17,000 In year 1, they elected to expense the start-up costs to the maximum extent possible. Note: immediate expensing reduces basis. On April 30, year 2, they purchased a customer list (a Section 197 intangible) for $10,000 from a company providing virtually the same services. During the summer of year 2, they purchased a small van (for transportation, not considered a luxury auto) and a business-use machine (7-year life). They bought the van and placed it in service on June 15, Y2, for $18,000. The machine cost $4,000 and was placed in service on July 1, Y2. Year 2 Assets Van Machine (7-year) Customer list Purchase Date June 15, Y2 July 1, Y2 April 30, Y2 Basis $ 18,000 4,000 10,000 Assume that eSys Answers does not claim any $179 expense or bonus depreciation. (Use MACRS Table 1, Table 2. Table 3. Table 4 and Ta 5.) (Do not round intermediat calculations Rou your answers to ar amount.) b. Complete eSys Answers' Form 4562 for year 1 (computers, office equipment, furniture & start-up costs only; do not include any of the assets acquired in year 2). Use "DOB" for double declining balance/200% DB. Parts I, II and V should be left blank. (Input all values as positive numbers. Disregard the year on the tax form; use 2019 tax rules regardless of year on tax form.) Part III MACRS Depreciation (Don't include listed property. See instructions.) Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2018 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here 17 Section B-Assets Placed in Service During 2018 Tax Year Using the General Depreciation System (c) Basis for (b) Month and year depreciation (d) Recovery (business/investment placed in service (e) Convention period (1) Method use onlySee instructions) (a) Classification of property (g) Depreciation deduction 15,000 5 year 7 year MQ MQ DOB DOB 750 464 19a 3-year property b 5-year property c 7-year property d 10-year property e 15-year property f 20-year property g 25-year property h Residential rental property i Nonresidential real property 25 yrs 27.5 yrs. 27.5 yrs. 39 yrs. S/L S/L MM S/L MM MM S/L MM S/L Section C-Assets Placed in Service During 2018 Tax Year Using the Alternative Depreciation System S/L S/L MM S/L MM S/L (See 20a Class life b 12-year C 30-year d 40-year 12 yrs. 30 yrs. 40 yrs. (c) Amortizable amount (d) Code section Part VI Amortization (b) Date (a) Description of costs amortization begins 42 Amortization of costs that begins during your 2018 tax year (see instructions): Start up costs 10/30/41 (e) Amortization period or percentage (f) Amortization for this year 12,000 X 195 15 Years 200 X 43 43 Amortization of costs that began before your 2018 tax year. 44 Total. Add amounts in column (f). See the instructions for where to report. UYA 200 Form 4562 (2018)