"Steed and Peel, Ltd. (S&P) is a new concept upscale Sandwich Shoppe (deli) in the North Scottsdale/Carefree area.1 In 2019, the owners purchased a vacant delicatessen, made a few cosmetic renovations (the location was a little shabby by local standards) and opened for business. Catering (no pun intended) mostly to the overly affluent and largely inert, the shop prepares custom gourmet sandwiches made with premium organic and locally-sourced ingredients. S&P then promptly delivers these concoctions to the homes and offices of its clientele. In its first tax year (calendar 2019), S&P netted $980,000 in taxable profit - it expects to clear well over $1,645,000 in 2020 (both figures are before any recovery deductions). With the advent of the COVID pandemic, the food delivery business really began to boom. To help keep up with demand and generally spruce-up the physical facilities in deference to their location, S&P made the following capital expenditures in 2020:

Description	Date Acquired	Cost
Executive Vehicle (Corvette)	4/21/2020	$ 92,086
Meat Slicers & Related Food Service (Used Eqpt.)	3/15/2020	297,461
Walk-in Cooler & Related	5/20/2020	377,853
Furniture & Fixtures	6/24/2020	140,543
Computers & Peripherals	1/8/2020	57,258
Canned software - business applications	9/25/2020	35,407
Delivery/Cargo Trucks (3 - each GVW 9,500 lbs)	11/25/2020	174,906
Building Improvements - Expansion Costs	9/21/2020	579,690

Requirements:

In general, S&Ps 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&Ps overall goals relative to depreciation and related deductions. In other words, taking into account the business constraints, how do you apply the federal tax law to maximize their 2020 deductions and minimize the record-keeping burden? Please make sure you consider all these elements when completing the MACRS Template provided as part of this project you should do your best to compute the maximum deduction. Also, dont forget the deduction ordering rules associated with the various IRC provisions discussed in your text and lecture materials. In addition, along the way, you will likely need to do a little additional research (the template has been partially completed for you/examples provided - see the purple and italicized type font) to determine the appropriate recovery period for certain of the assets. As discussed in your lecture materials, Revenue Procedure 87-56 is a great place to look for such answers. A copy of that Rev. Proc. is included on Canvas with the other project materials. You can also use Cheetah or Checkpoint to expand or practice your research if desired or if you have forgotten about conventions or GDS methods from your lectures. Of course, you can always review the lectures and/or your text as well. Be sure to review the supplement (Video Part 1A pertaining to inflation adjustments) as you may need to address some of those figures that are not fully incorporated in your text.

Certain cells in the Excel template are protected (mostly formulas) so you cannot change them (including the purple ones). Please enter your name and ASU ID number at the top of the worksheet. Ive provided an area on the far right of the worksheet for you to enter any comments you feel are necessary to explain your approach. You can always include any relevant additional comments in Canvas when you upload your project Excel file (see below)."

I've gotten this far. My total allowable deductions needs to be between $982,400 and $1,200,600. I'm not sure if I'm doing any of this correctly.

I'm sorry that it's a lot. I appreciate any help I can get.

Descnpoon Date Acquirea LOST Period Convention GLS Meunoa Amount Executive Vehicle (Corvette) 4/21/201$ 92,086 5 HY DDB 18,417 Meat Slicers & Related Food Service (Used Eqpt.) 3/15/20 297,461 3 HY DDB 99,144 Walk-in Cooler & Related 5/20/20 377,853 7 HY DDB 53,995 Furniture & Fixtures 6/24/20 140,543 7 HY DOB 140,543 Computers & Peripherals 1/8/20 57,258 5 HY DDB 57,258 Canned software - business applications 9/25/20 35,407 3 HY DDB 11,801 Delivery/Cargo Trucks (3 - each GW 9,500 lbs.) 11/25/20 174,906 5 HY DDB 34,981 Building Improvements - Expansion Costs 9/21/20 579,690 15 HY DDB 28,985 $ $ 445,124 Totals Total Personal Property (after any $179) Total Personal Property 4th Quarter (after any $179) Fourth Quarter Ratio 1,755,204 1,310,080 139,925 10.68% M Basis N % 0 Deau culon Q Deductions Amount basis Bonus Kate Bonus Dupin. MAURS Cap 18,417 73,669 50% 36,834 36,835 20.0% 7,367 18,100 18,100 99,144 198,317 50% 99,159 99,158 33.3% 33,049 231,352 53,995 323,858 50% 161,929 161,929 14.3% 23,140 239,064 140,543 nya n/a nya 140,543 57,258 nya n/a 9 57,258 11,801 23,606 50% 11,803 11,803 33.3% 3,934 27,538 34,981 139,925 50% 69,962 69,963 20.0% 13,993 25,900.00 25,900 28,985 550,706 50% 275,353 275,353 5.000% 13,768 318,106 445,124 $ 1,310,080 $ 655,040 $ 655,040 $ 95,251 $ 1,057,861 Descnpoon Date Acquirea LOST Period Convention GLS Meunoa Amount Executive Vehicle (Corvette) 4/21/201$ 92,086 5 HY DDB 18,417 Meat Slicers & Related Food Service (Used Eqpt.) 3/15/20 297,461 3 HY DDB 99,144 Walk-in Cooler & Related 5/20/20 377,853 7 HY DDB 53,995 Furniture & Fixtures 6/24/20 140,543 7 HY DOB 140,543 Computers & Peripherals 1/8/20 57,258 5 HY DDB 57,258 Canned software - business applications 9/25/20 35,407 3 HY DDB 11,801 Delivery/Cargo Trucks (3 - each GW 9,500 lbs.) 11/25/20 174,906 5 HY DDB 34,981 Building Improvements - Expansion Costs 9/21/20 579,690 15 HY DDB 28,985 $ $ 445,124 Totals Total Personal Property (after any $179) Total Personal Property 4th Quarter (after any $179) Fourth Quarter Ratio 1,755,204 1,310,080 139,925 10.68% M Basis N % 0 Deau culon Q Deductions Amount basis Bonus Kate Bonus Dupin. MAURS Cap 18,417 73,669 50% 36,834 36,835 20.0% 7,367 18,100 18,100 99,144 198,317 50% 99,159 99,158 33.3% 33,049 231,352 53,995 323,858 50% 161,929 161,929 14.3% 23,140 239,064 140,543 nya n/a nya 140,543 57,258 nya n/a 9 57,258 11,801 23,606 50% 11,803 11,803 33.3% 3,934 27,538 34,981 139,925 50% 69,962 69,963 20.0% 13,993 25,900.00 25,900 28,985 550,706 50% 275,353 275,353 5.000% 13,768 318,106 445,124 $ 1,310,080 $ 655,040 $ 655,040 $ 95,251 $ 1,057,861