07 Jun Question Steem Advertising Corporatio
Question
Steem Advertising Corporation acquires 100 laptop computers in 2012 for its account executives to use. Steem pays $300,000 for the computers and bundled software. You are a newly hired CPA and you expect to advise Steem on tax issues regarding tax years 2013 and 2014. Upon examining the firm’s records for 2012, you find that each computer was expensed and deducted in 2012. Later when examining one of the computers, you notice it has several games loaded on the hard drive. Also, you find several items of personal correspondence saved in a subdirectory of the word processing package. What should you do? What are your obligations under the SSTSs?
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