1. Genetic Insights Co. purchases an asset for $19,895. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $3,352. Calculate accumulated depreciation over 6 years. Round the answer to two decimals.
2. Post Card Depot, an large retailer of post cards, orders 5,198,850 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 18 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.16 per post card per year. The ordering cost is $201 per order.
What is the annual carrying costs of post card inventory (round the answer to two decimal places)?