Sasha and Owen each own 50% of Weilding LLC a limited liability company located in San Fransico, California which was created in March of 2016. Weilding LLC provides Emergency Vet Services and uses the cash method of accounting. Sasha and Owen have come to you on December 30, 2017 to ask your advice on some transactions they are considering and would like your assistance with tax planning prior to the close of the year.

Weilding's financial information is provided below:

Profit and Loss Statement January 1, 2017-December 30, 2017:

Gross Receipts:

Veterinary Services$575,000

Expenses:

Salaries $400,000

Utilities $17,000

Depreciation $15,000

Supplies $75,000

Interest $20,000

Total Expenses $557,000

Net Income $48,000

Balance Sheet - 12/30/2017

Assets:

Cash $ 8,500

Equipment $50,000

A/D - Equipment (21,500)

Building $250,000

A/D - Building (100,000)

Total Assets $187,000

Liabilities & Equity:

Mortgage - Building $125,000

Member Capital - Sasha $31,000

Member Capital - Owen $31,000

Total Liabilities & Equity $187,000

Please provide Weilding LLC advice on the following transaction:

They would like to purchase additional equipment for their business, they have not purchased any other fixed assets in 2017.

AssetCost

Examination Table $5,000

X-Ray Machine $115,000

(a). Calculate the tax depreciation assuming these assets are purchased and placed in service on 12/31/2017.

(b). Calculate tax depreciation assuming these assets are purchased on 1/1/2018. In each calculation assume Weilding LLC would like to take the maximum allowable deduction.

(c). Which year would provide a better result for Weilding LLC?