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ST3.1 In 2003, three recent Industrial Engineering graduates are considering setting up a new consulting company, ErgoTech Ltd., to provide services on ergonomic de signs

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ST3.1 In 2003, 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 $000 on furniture, photo- copier, and testing equipment {Class 3}, $3500 on a computer including systems software (Class 50}, $2400 on general and specialized software (Class 12), and ll 3,000 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: 1r'ear 1: purchase additional ergonomics software for $300 Year 2: purchase a second computer for $4000, and specialized software for $l000 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: Still the original computer for $500 (uuinslalling all software except the sys- tems software}; spend $2000 to upgrade the motherboard, RAM and video card on the second computer, which will signicantly improve its performance Fill out a table similar to Schedule 8 shown in Figure 3.6 to show the capital cost allowances for each of these classes, and an annual total, for ErgoTech's rst four years of business. D

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