Steem Advertising Corporation acquires 100 laptop computers in 2015 for its account executives to use. Steem pays $300,000 for the computers and bundled software. You are the newly hired CPA and you expect to advise Steem on tax issues regarding tax years 2016 and 2017. Upon examining the firm's records for 2015, you find that each computer was expensed and deducted in 2015. Later, when examining one of the computers, you notice it has several games loaded on the hard drive. Also, you find several items of personal correspondence saved in a subdirectory of the word-processing software package.

What should you do? What are your obligations under the Statement on Standards for Tax Services?