Research Problem 1. Your client, Dave's Sport Shop, sells sports equipment and clothing in three retail outlets in New York City. During 2016, the CFO decided that keeping track of inventory using a combination of QuickBooks and Excel was not an efficient way to manage the stores' inventories. So Dave's purchased an inventory management system for $9 ,000 that allowed the entity to keep track of inventory , as well as automate ordering and purchasing, without replacing QuickBooks for its accounting function. The CFO would like to know whether the cost of the inventory management program can be expensed in the year of purchase. Write a letter to the CFO, Cassandra Martin, that addresses the tax treatment of purchased software. Cassandra's mailing address is 867 Broadway, New York, NY 10003. Research Problem 2. In 2012, Jed James began planting a vineyard. lhe costs of the land preparation, labor, rootstock, and planting were capitalized. The land preparation costs do not include any nondepreciable land costs. In 2016, when the plants became viable, Jed placed the vineyard in service. Jed wants to know whether he can claim a deduction under 179 on his 2016 income tax return for the 2012 costs for planting the vineyard. Research Problem 1. Your client, Dave's Sport Shop, sells sports equipment and clothing in three retail outlets in New York City. During 2016, the CFO decided that keeping track of inventory using a combination of QuickBooks and Excel was not an efficient way to manage the stores' inventories. So Dave's purchased an inventory management system for $9 ,000 that allowed the entity to keep track of inventory , as well as automate ordering and purchasing, without replacing QuickBooks for its accounting function. The CFO would like to know whether the cost of the inventory management program can be expensed in the year of purchase. Write a letter to the CFO, Cassandra Martin, that addresses the tax treatment of purchased software. Cassandra's mailing address is 867 Broadway, New York, NY 10003. Research Problem 2. In 2012, Jed James began planting a vineyard. lhe costs of the land preparation, labor, rootstock, and planting were capitalized. The land preparation costs do not include any nondepreciable land costs. In 2016, when the plants became viable, Jed placed the vineyard in service. Jed wants to know whether he can claim a deduction under 179 on his 2016 income tax return for the 2012 costs for planting the vineyard.