Steed and Peel, Ltd is a new concept upscale deli in the North Carefree area. In its first tax year (calendar 2018), S&P netted $955,000 in taxable profit - it expects to clear well over $1,385,000 in 2019 (both figures are before any recovery deductions). 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, upon advice of their financial and legal advisors, related to certain regulatory issues (beyond our scope here), S&P will only consider claiming "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.

Description Cost Remaining Recovery % GDS Luxury Auto Total Allowable Basis Recovery MACRS Cap Deductions Deduction Executive $92,004 Vehicle (Audi 92,004 Meat Slicers & Related Food 323,064 323,064 Service (Used Eqpt.) Walk-in Cooler & Related 368,651 368,651 Furniture & 122,200 n/a na 122,200 Fixtures Computers & na na 48,238 Peripherals 48,238 Canned software - 34500 34,500 business applications Delivery/ Cargo Trucks (3 - 173,700 173,700 each GVW 9,500 lbs.) Building Improvements 526,296 526,296 - Expansion Costs