Calculate the total of capital expenditure incurred by erica

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Erica trades as a financial adviser. She rents an office in the town centre and employs three full-time staff. She advises clients on how to manage their savings, investments and pension funds. Erica decided that she needed a new computer system for the business in order to improve efficiency.

The following expenditure was incurred when the new system was purchased:

Cost of computer $1900

Paper, ink cartridges and other consumables $110

Cost of colour laser printer $450

Installation and testing costs $200

Staff training on new system $500

Annual insurance against theft and breakdowns $90

Cost of rewiring to accommodate new computer $340

Annual maintenance agreement $99

Problem a. Calculate the total of capital expenditure incurred by Erica's business when acquiring the computer system.

Reference no: EM133007411

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