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While completing undergraduate school work in information systems, Dallin Bourne and Michael Banks decided to start a business called eSys Answerswhich was a technology support company. During year 1, they bought the following assets and incurred the following fees at start-up:

Year 1 Assets Purchase Date Basis Computers (5-year) October 30, Y1 $ 15,000 Office equipment (7-year) October 30, Y1 10,000 Furniture (7-year) October 30, Y1 3,000 Start-up costs October 30, Y1 17,000

In April of year 2, they decided to purchase a customer list from a company started by fellow information systems students preparing to graduate who provided virtually the same services. The customer list cost $10,000 and the sale was completed on April 30th. During their summer break, Dallin and Michael passed on internship opportunities in an attempt to really grow their business into something they could do full time after graduation. In the summer, they purchased a small van (for transportation, not considered a luxury auto) and a pinball machine (to help attract new employees). They bought the van on June 15, Y2, for $15,000 and spent $3,000 getting it ready to put into service. The pinball machine cost $4,000 and was placed in service on July 1, Y2.

Year 2 Assets Purchase Date Basis Van June 15, Y2 $ 18,000 Pinball machine (7-year) July 1, Y2 4,000 Customer list April 30, Y2 10,000

Assume that eSys Answers does not claim any 179 expense or bonus depreciation. (UseMACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest wholedollar amount.)

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b. Complete eSys Answers's Form 4562 for Y1.

(Input all values as positive numbers. Use 2018 tax rules regardless of year on tax form.)