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Please provide original help with question! Andrew, a cash method taxpayer, starts his company (an LLC) in 2022. Since his company is new, he has

Please provide original help with question!

Andrew, a cash method taxpayer, starts his company (an LLC) in 2022. Since his company is new, he has to purchase many items for the business. Below are the list of items Andrew purchased in 2022:

Date Purchase

Item

Cost

Note

1/03/2022

Office furniture

$20,000

2/5/2022

Computers

$10,000

6/7/2022

Equipment

$100,000

11/29/2022

Car

$25,000

To use as the delivery vehicle

a) What is Andrew's total depreciation expenses in 2022? Note: You need to go through step-by-step, 179 -> Bonus depreciation -> MACRS. Provide detailed calculations/explanations.

b) Assuming that Andrew cannot take any 179 deduction and Bonus depreciation, what is Andrew's total depreciation expenses in 2022 for the items above? In other words, calculate Andrews depreciation using MACRS (Provide detailed calculations/explanations)

c) Andrew wrote you an email yesterday saying that he forgot to mention a few other expenditures in 2022. Those items are below:

Legal cost + fees to establish the LLC: $5,000, paid in 1/1/2022

Warehouse rent: $18,000, paid on 06/31/2022 (the day that Andrew signed the rental contract). Andrew must pay the rent for 18 months ahead of time according to the contract.

Ignore the other deduction in part a or b, how much deduction (note: I am asking about deduction, not depreciation) can Andrew claim for these new items in 2022? (Provide detailed calculations/explanations)

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