Please fill out the spreadsheet using the instructions and information provided.
\begin{tabular}{|c|c|c|} \hline Desolption. & Oone Agand & cos \\ \hline & sonat & 132,514 \\ \hline & e. & \\ \hline & mage & sen2 \\ \hline Deteraber & sin4 & \\ \hline Gentathopers. & sxas. & sent \\ \hline & & Hint \\ \hline & & \\ \hline & maxal. & 42311 \\ \hline lin & & \\ \hline & & \\ \hline & in & \\ \hline Foum giater tine & & evice \\ \hline & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline & Aneans & Bonerine & Boent Desen & lnn & smanen & coscoscos & mosicior & & \\ \hline & & & & 13,614 & & & & & \\ \hline & Jeses & & & ans & & & & & \\ \hline & ases & & & ontan & & & & & \\ \hline sen & & a) & & & at & & & sen & \\ \hline meve & & at & & & at. & & Ah & istue & \\ \hline & xura & & & isua & & & & & \\ \hline & 3m,m & & & in.sun & & & & & \\ \hline & 411 & & & 4311 & & & & & \\ \hline \end{tabular} s ann 1 smans 1 206.380 Facts: Steed and Peel, Ltd. (S\&P) is a new concept upscale "Sandwich Shoppe" (deli) in the North Scottsdale/Carefree area. 1 In early 2021, the owners purchased a vacant delicatessen/convenience store, made a few cosmetic renovations (the location was a little shabby by local standards) and opened for business. Catering (no pun intended) mostly to the overly affluent and largely inert, the shop prepares custom gourmet sandwiches, salads and related items, with premium organic and locally sourced ingredients. S\&P then promptly delivers these concoctions to the homes and offices of its clientele (with far more cachet than one of the commercial delivery services). In its first tax year (calendar 2021), S\&P netted $940,000 in taxable profit - it expects to clear well over $1,580,000 in 2022 (both figures are before any recovery deductions). S\&P's timing was fortuitous as with the advent of the COVID pandemic, the food delivery business skyrocketed. To help keep up with demand and generally spruce-up the physical facilities in deference to their location, S\&P made the following capital expenditures in 2022: Requirements: In general, S\&P's owners (it is a " C " corporation) want to maximize first-year tax depreciation and related deductions. In this context, they also hope to avoid keeping annual depreciation records, if possible. However, after conferring with their financial and legal advisors, related to certain financial covenants and regulatory issues (beyond our scope here), S\&P will only consider claiming 1 For students not familiar with the metropolitan Phoenix area, North Scottsdale/Carefree is generally considered a "toney" community - an Arizona version of La Jolla, Beverly Hills or Westchester. "bonus depreciation" for software acquisitions, if such a bonus allowance is otherwise available. Given the foregoing, your task is to determine how best to achieve S\&P's overall goals relative to depreciation and related deductions. In other words, taking into account the business constraints, how do you apply the federal tax law to maximize their 2022 deductions and minimize the recordkeeping burden? Please make sure you consider all these elements when completing the MACRS Template provided as part of this project - you should do your best to compute the maximum deduction. Also, do not forget the deduction ordering rules associated with the various IRC provisions discussed in your text and lecture materials. In addition, along the way, you will likely need to do a little additional research (the template has been partially completed for you/examples provided - see the purple and italicized type font) to determine the appropriate recovery period for certain assets. As discussed in your lecture materials, Revenue Procedure 8756 is a great place to look for such answers. A copy of that Rev. Proc. is included on Canvas with the other project materials. You can also use CCH AnswerConnect/VitalLaw or RIA Checkpoint to expand or practice your research if desired, or if you have forgotten about MACRS conventions or GDS methods from your lectures. Of course, you can always review the lectures and/or your text as well. Be sure to review the supplement (Video Part 2A pertaining to inflation adjustments) as some of those figures may or may not be incorporated in your text. Certain cells in the Excel template are protected (mostly formulas) so you cannot change them (including the purple ones). You can make entries in any column with a header shaded yellow as well as a few discrete cells shaded yellow. Don't forget to enter your name and ASUID number at the top of the worksheet. I've provided an area on the far right of the worksheet for you to enter any comments you feel are necessary to explain your approach. You can also use the Overflow tab for any relevant additional comments that will not fit in the main template. \begin{tabular}{|c|c|c|} \hline Desolption. & Oone Agand & cos \\ \hline & sonat & 132,514 \\ \hline & e. & \\ \hline & mage & sen2 \\ \hline Deteraber & sin4 & \\ \hline Gentathopers. & sxas. & sent \\ \hline & & Hint \\ \hline & & \\ \hline & maxal. & 42311 \\ \hline lin & & \\ \hline & & \\ \hline & in & \\ \hline Foum giater tine & & evice \\ \hline & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline & Aneans & Bonerine & Boent Desen & lnn & smanen & coscoscos & mosicior & & \\ \hline & & & & 13,614 & & & & & \\ \hline & Jeses & & & ans & & & & & \\ \hline & ases & & & ontan & & & & & \\ \hline sen & & a) & & & at & & & sen & \\ \hline meve & & at & & & at. & & Ah & istue & \\ \hline & xura & & & isua & & & & & \\ \hline & 3m,m & & & in.sun & & & & & \\ \hline & 411 & & & 4311 & & & & & \\ \hline \end{tabular} s ann 1 smans 1 206.380 Facts: Steed and Peel, Ltd. (S\&P) is a new concept upscale "Sandwich Shoppe" (deli) in the North Scottsdale/Carefree area. 1 In early 2021, the owners purchased a vacant delicatessen/convenience store, made a few cosmetic renovations (the location was a little shabby by local standards) and opened for business. Catering (no pun intended) mostly to the overly affluent and largely inert, the shop prepares custom gourmet sandwiches, salads and related items, with premium organic and locally sourced ingredients. S\&P then promptly delivers these concoctions to the homes and offices of its clientele (with far more cachet than one of the commercial delivery services). In its first tax year (calendar 2021), S\&P netted $940,000 in taxable profit - it expects to clear well over $1,580,000 in 2022 (both figures are before any recovery deductions). S\&P's timing was fortuitous as with the advent of the COVID pandemic, the food delivery business skyrocketed. To help keep up with demand and generally spruce-up the physical facilities in deference to their location, S\&P made the following capital expenditures in 2022: Requirements: In general, S\&P's owners (it is a " C " corporation) want to maximize first-year tax depreciation and related deductions. In this context, they also hope to avoid keeping annual depreciation records, if possible. However, after conferring with their financial and legal advisors, related to certain financial covenants and regulatory issues (beyond our scope here), S\&P will only consider claiming 1 For students not familiar with the metropolitan Phoenix area, North Scottsdale/Carefree is generally considered a "toney" community - an Arizona version of La Jolla, Beverly Hills or Westchester. "bonus depreciation" for software acquisitions, if such a bonus allowance is otherwise available. Given the foregoing, your task is to determine how best to achieve S\&P's overall goals relative to depreciation and related deductions. In other words, taking into account the business constraints, how do you apply the federal tax law to maximize their 2022 deductions and minimize the recordkeeping burden? Please make sure you consider all these elements when completing the MACRS Template provided as part of this project - you should do your best to compute the maximum deduction. Also, do not forget the deduction ordering rules associated with the various IRC provisions discussed in your text and lecture materials. In addition, along the way, you will likely need to do a little additional research (the template has been partially completed for you/examples provided - see the purple and italicized type font) to determine the appropriate recovery period for certain assets. As discussed in your lecture materials, Revenue Procedure 8756 is a great place to look for such answers. A copy of that Rev. Proc. is included on Canvas with the other project materials. You can also use CCH AnswerConnect/VitalLaw or RIA Checkpoint to expand or practice your research if desired, or if you have forgotten about MACRS conventions or GDS methods from your lectures. Of course, you can always review the lectures and/or your text as well. Be sure to review the supplement (Video Part 2A pertaining to inflation adjustments) as some of those figures may or may not be incorporated in your text. Certain cells in the Excel template are protected (mostly formulas) so you cannot change them (including the purple ones). You can make entries in any column with a header shaded yellow as well as a few discrete cells shaded yellow. Don't forget to enter your name and ASUID number at the top of the worksheet. I've provided an area on the far right of the worksheet for you to enter any comments you feel are necessary to explain your approach. You can also use the Overflow tab for any relevant additional comments that will not fit in the main template
