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.

https://business-accounting-guides.com/macrs/Guideline for MACRS Rules

I I Description Date Cost 5179 Remaining Bonus Acquired Expense Basis Bonus Depro. Amount Rate Executive 5/6/2019 $92,004 92,004 Vehicle (Audi AB) Meat Slicers & 2/24/2019 323,064 Related Food 323,064 Service (Used Eqpt.) Walk-in Cooler | 6/20/2019 368,651 & Related 368,651 Furniture & 7/26/2019 122,200 122,200 Fixtures n/a Computers & 1/16/2019 48,238 na Peripherals 48,238 Canned 9/25/2019 34,500 software - 34500 business applications Delivery/Cargo 11/11/2019 173,700 Trucks (3 - 173,700 each GVW 9,500 lbs.) Building 10/12/2019 526,296 Improvements 526,296 - Expansion Costs