Heather began her Strings N Things business in 2015 and purchased several assets during that year. She did not elect Section 179 expensing (and she elected out of bonus depreciation) at thattime because her business was just beginning (with little cash inflow). The following assets, purchased in 2015, are used 100% for business and have been depreciated using MACRS: Computer equipment (#1) purchased January 2015 for $5,000 (5year property) Sound system purchased in January 2015 for $12,000 (7year property). Furniture purchased in March 2015 for $9,500 (7year property). Display cases purchased in May 2015, for $14,700 (5year property).

HINT:

1. Heather has a beginning and ending inventory of $10,000 in her business.