Using the Base Case, calculate total depreciation expense for the year 2023E. Assume that depreciation expense on assets pre-2020E is $15,000 per year. Depreciation on capital expenditures made from 2020E-2024E assumes a 4-year useful life and a salvage value equal to 10% of the original cost.

Base Case Capital Assumptions
Asset Salvage Value (% of Capital Addition)				10%
Asset Useful Life (New Additions)				4 Years

Answer option:

$19,500

$30,000

$33,000

$20,000

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2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E Scenario Inputs Base Case Income Statement Assumptions Annual Sales Growth (%) Cost of Sales (% of Sales) SG&A Expense (% of Sales) 7.6% 38.0% 24.0% 7.6% 38.0% 24.0% 7.6% 38.0% 24.0% 7.6% 38.0% 24.0% 7.6% --------- 38.0% --------- 24.0% $15,000 $15,000 $15,000 $15,000 $15,000 Depreciation Expense (On Existing Assets) Depreciation Expense (On New Additions) Total Depreciation Expense $15,000 $15,000 $15,000 ----------- $15,000 $15,000 Interest Rate Effective Tax Rate 4.0% 30.0% 4.0% 30.0% 4.0% 30.0% 4.0% 30.0% --------- 4.0% 30.0% ----------- 18 18 Balance Sheet Assumptions Accounts Receivable (Days) Inventory (Days) Accounts Payable (Days) Capital Expenditures Debt Issuance (Repayment) Equity Issued (Repaid) 18 70 35 $20,000 $0 $ 888a 18 70 35 $20,000 ($20,000) $0 70 35 $20,000 $0 70 35 $20,000 ($10,000) SO 70 35 $20,000 $0 $0 $0