Sand Valley Corp (SVP), is adding a distribution center in Edwardsville. SVP, a calendar year taxpayer, made the following purchases in 2020. (1) New warehouse to store inventory purchase in September, 2020 for $5,000,000, (2) a Fleet of Delivery trucks $1,400,000 in October 2020 (3) New Computer Equipment for $390,000 in April 2020 and (4) $1,600,000 of furniture and Fixtures in June 2020. SVP Corp had 10,000,000 in taxable income before taking Section 179, bonus depreciation or MACRS depreciation in the current year. Assume that the company wants to maximize their section deduction in 2020. They do not want to take bonus depreciation. Use the 2020 maximum section 179 of $1,040,000 and the $2,590,000 tangible property threshold.

1. What is the Section 179 allowed? (show calc) ____________________________

2. What is the calculation/test to determine whether Mid Quarter Convention Applies? Does Mid Quarter Convention Apply? Please show calculation for full creditYou will lose points if you do not show calculation or your calculation is incorrect.

3. Calculate the section 179 deduction (if eligible); and MACRS.

New Delivery New Computer Furniture

Warehouse Trucks Equipment & Fixtures

(September) (October) (April) (June)

Life ___ ___ ___ __

Cost $5,000,000 $1,400,000 $390,000 $1,600,000

Section 179 _________ _________ __________ __________

MACRS __________ _________ __________ __________

Total Deductions: ___________________

4. How would your answer change if the taxpayer elected bonus depreciation for all eligible asset classes?