Here is one accounting question about depreciation, could somebody tell me weather my answer is right, thanks in advance.

Company A must submit a list of fixed assets to our auditors as of 12/31/06.  The company's policy requires a $1,000 minimum for an asset to be capitalized.

1. On January 1, 2006, the fixed asset balance was $15,888.98, and the accumulated depreciation as of this date was $3,031.01.
2. 2006 depreciation expense for assets purchased PRIOR to 2006 totaled $2,750.57.
3. The company purchased fixed assets throughout the year as follows:
   1. Laptop 1 with 5 year life and straight-line depreciation was purchased and put into service April 1, 2006 with a total cost of $1,450.22.
   2. Laptop 2 with 5 year life and straight-line depreciation was purchased and put into service June 1, 2006 with a total cost of $1,540.22.
   3. Laptop 3 with 5 year life and straight-line depreciation was purchased on December 19, 2006 and has not yet been put into service as of December, 31 2006.  Its total cost was $1, 899.89.
   4. Digital camera 1 with 3 year life and straight-line depreciation was purchased and put into service on July 1, 2006 at a total cost of $975.25.
   5. The company did not dispose of any fixed assets throughout the year.

The CFO and the auditors prefer to have a schedule which notes company name (i.e. Phacil, Inc.), schedule type and date. 

The presentation should take the form of beginning fixed asset & accumulated depreciation balances, fixed asset addition detail, fixed asset disposition detail, current year's depreciation on ALL assets, and ending fixed and accumulated depreciation balances as of 12/31/06.

My answer:

Beg. Balance of fixed assets (net) $15888.98-3031.01 =$12857.97

Depreciation Expense for Laptop 1  1450.22/5x9/12 = $217.53

Depreciation Expense for Laptop 2  1540.22/5x7/12 = $179.70

Depreciation Expense for Laptop 3 $0

Depreciation Expense for Digital Camera  975.25/3x6/12 = $162.54

Total accumulated depreciation for fixed assets bought during 2006 is $559.77

Ending balance for fixd assets is $21754.56

Endng balance for acc. Depreciation for 2006 is 3689.78

So ending balance of fixed assets net is $18064.78.

My question:

Are there depreciation expense for Laptop 3 since it has not been put in service during 2006?

What does the $1000 minimum asset capitalization mean?

How should I deal with the Prior years depreciation expense? Ignor it?

Waiting for answer online, thanks.