During 2011, Schottenheim Corporation buys 20 laptop computers and a mainframe computer to use in its general sales offices. Schottenheim buys 14 laptops for $42,000 on March 29, 6 laptops for $18,000 on September 26, and the mainframe for $510,000 on October 5. The Corporation makes no other capital expenditures this year.

Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.