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

Year 1 AssetsPurchase DateBasisComputers (5-year)October 30, Y1$15,000Office equipment (7-year)October 30, Y110,000Furniture (7-year)October 30, Y13,000Start-up costsOctober 30, Y117,000

In April of year 2, they decided to purchase a customer list from a company providing virtually the same services, started by fellow information systems students preparing to graduate. The customer list cost $10,000 and the sale was completed on April 30. 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 AssetsPurchase DateBasisVanJune 15, Y2$18,000Pinball machine (7-year)July 1, Y24,000Customer listApril 30, Y210,000

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

Table 1

https://ezto-demo-cf-media.mheducation.com/Media/Demo/bne/accounting/spilker_11e/ch10_table1.htm

Table 2

https://ezto-demo-cf-media.mheducation.com/Media/Demo/bne/accounting/spilker_11e/ch10_table2.htm

Table 3

https://ezto-demo-cf-media.mheducation.com/Media/Demo/bne/accounting/spilker_11e/ch10_table3.htm

Table 4

https://ezto-demo-cf-media.mheducation.com/Media/Demo/bne/accounting/spilker_11e/ch10_table4.htm

Table 5

https://ezto-demo-cf-media.mheducation.com/Media/Demo/bne/accounting/spilker_11e/ch10_table5.htm