Fill the excel sheet.

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Page 1 ACC 454 - Fall 2021 MACRS Excel Exercise Facts: 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&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 1 For students not familiar with the metropolitan Phoenix area, North Scottsdale/Carefree is generally considered a "toney" community - an Arizona version of La Jolla or Beverly Hills. Page 2 the foregoing, your task is to determine how best to achieve S&P's 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, don't 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). You can make entries in any column with a header shaded yellow as well as a few discrete cells shaded yellow. Don't forget to enter your name and ASU ID number at the top of the worksheet. I've 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 also use the Overflow tab for any relevant additional comments that will not fit in the main template. When you upload your completed Excel project to Canvas, please make sure your filename largely follows this example: LastName_FirstName_ACC454_MACRS_Deprn_Exercise_Fall_2021.xlsx So good luck with the project and let me know (via email or Hallway Conversations) if you have any pressing questions. Oh - in case you are wondering if you are close to the desired maximum solution, while I cannot give away the "optimal" answer, I will tell you should be between $982,400 and $1,200,600 in total allowable deductions when done. If you are a considerably above or below this target range, you may want to give the project a second look.