Web Application Chapter 13 page 538

The Clesalmil Insurance Agency needs to purchase new electronic items for the office. Mr. Clesalmil has asked you to take care of this. He gives you a list of items that are needed. The list includes one of each of the following: DirectTV System, CD Recorder, DVD Player and a Complete Home Theater. Along with the list, Mr. Clesalmil tells you that $1500.00 budget has been designated for these purchases. He also suggests that you will be able to save time by using the Internet. Visit www.macys.com to research the items. Hint: Look under electronics. As you shop, keep your $1500 budget in mind. Use your discretion to select the items you need. Complete the chart below using the information that you have located.

1. All four of the items are being used for the business, therefore, for tax purposes, use the total spent to calculate the depreciation. The equipment has an estimated life of 2 years, and a total salvage value of $250. Use the straight-line method to find the annual amount of depreciation.

Include the date of the information in your answer.

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