Susan and Michael each own 50% of Ring LLC a limited liability company located in Aspen, Colorado which was created in March of 2016. Ring LLC provides veterinary services and uses the cash method of accounting. Susan and Michael 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 Ring's financial information is provided below: Profit and Loss Statement January L, 2017- December 30, 2017: Gross Receipts Veterinary Services $575,000 Expenses Salaries Utilities Depreciation Supplies Interest Total Expenses $557,000 Net Income $400,000 $17.000 $15,000 $75,000 20.000 $48,000 Balance Sheet 12/30/2017 Assets Cash Equipment A D-Equipment Building AD- Building Total Assets Liabilities & Equits Mortgage - Building $125,000 Member Capital- Susan $31,000 Member Capital - Michael $31,000 Total Liabilities && Equity $187.000 $8,500 $50,000 (21.500) $250,000 $187,000 Please provide Ring LLC advice on the following transaction: 1. They would like to purchase additional equipmenit for their business, they have not purchased any other fixed assets in 2017