4C THURSDAY , JANUARY 21 , 2016 BUSINESS THE OKLAHOMAN | NEWSOK.COM

LAW EXTENDS BUSINESS EQUIPMENT DEPRECIATION SAVINGS THROUGH 2019

Q: Congress late last year extended the bonus depreci-ation expense. What is bonus depreciation and what does it mean that it was extended?

A: Bonus depreciation was introduced almost 15 years ago as a temporary economic stimulus tool. Congress hoped permit-ting faster depreciation on new property used in the U.S. would incent additional capital invest-ment. The bonus depreciation has generally expired at the end of each year with Congress extend-ing it, retroactively, in December. This happened again in 2015 when Congress extended the bonus depreciation retroactively to Jan. 1, 2015. However, this time Congress didn’t stop at extending the law for just one year. The law is now extended through 2019, allowing businesses to plan for the deduction and, hopefully, allowing the law to better serve its intended purpose of encouraging capital investment.

 Q: How much does bonus depreciation help

with the cost of investing in new equipment?A: Bonus depreciation permits a business to

deduct 50 percent of the cost of property placed in service during 2015, 2016 and 2017. The percentage falls to 40 percent in 2018 and 30 percent in 2019. There’s no cap on the amount of depreciation or the cost of the property involved. Therefore, savings in the year of purchase for qualifying property can be substantial. For example, the acquisition of a $10 million item can result in an immediate deduction of $5 million in addition to depreciation expense on the remaining $5 million. Depending on the tax bracket of the taxpayer, the savings can be quite high.

 Q: Isn’t there another depreciation rule

referred to as Section 179?A: Section 179 is a permanent part of the tax

code that, under the law passed in December, allows up to $500,000 in qualifying asset pur-chases to be expensed in the year of purchase. This deduction, however, is targeted toward small busi-nesses as the deduction phases out after $2 million in assets are bought in a single year. The deduction also is limited by taxable income.

 Q: It sounds like companies can reduce their

tax bill considerably by simply buying assets. Is that correct?

A: Yes. But generally you only should invest in assets you need, and would buy without consider-ation of the tax consequences. Nevertheless, these deductions do provide some incentive to accelerate purchases into years where you expect to have higher tax liability. Each tax situation is unique and not all assets qualify for these deductions, so check with your tax adviser before making decisions.

PAULA BURKES, BUSINESS WRITER

LaDonna SinningA CERTIFIED PUBLIC ACCOUNTANT, CER-TIFIED FRAUD EXAM-INER AND PARTNER AT EDMOND-BASED ARLEDGE AND ASSO-CIATES ACCOUNTING FIRM

Q&A WITH LADONNA SINNING

CASH WHEAT5 to 6 cents lower. 3.87-4.27

Alva . . . . . . . . . 4.10 Banner. . . . . . . 4.13Buffalo. . . . . . . 4.10 Cherokee . . . . 4.13Clinton. . . . . . . 4.02 Davis . . . . . . . . 3.87El Dorado . . . . 4.27 El Reno . . . . . .4.09Frederick. . . . . 3.97 Geary . . . . . . . .4.09 Hobart . . . . . . . 3.97 Hooker. . . . . . . 4.12Keyes . . . . . . . . 3.94 Lawton . . . . . . 3.97Manchester . . . . 4.12 Medford . . . . . 4.17Miami. . . . . . . . N/A Okarche . . . . .4.09Okeene . . . . . . 4.09 Perry . . . . . . . . 4.16Ponca City . . . . 4.16 Shattuck. . . . . 4.07Stillwater . . . . 4.16 Temple . . . . . . 3.97Watonga . . . . 4.09 Weatherford . . . 4.07 Gulf . . . . . . . . . . . . 5.42

FEED GRAINSMILO

Alva . . . . . . . . 5.58 Buffalo. . . . . . 5.58 Hooker. . . . . . 5.39 Keyes . . . . . . . 5.48Manchester. .5.51 Medford . . . . 5.64Miami. . . . . . . .N/A Ponca City . . . 5.60Shattuck. . . . 5.60 Weatherford . . 5.42Gulf . . . . . . . . . .N/A

SOYBEANSAlva . . . . . . . . 8.02 Buffalo. . . . . . 8.02 Hooker. . . . . . 7.79 Medford . . . . 8.04Miami. . . . . . . .N/A Ponca City . . . 8.04Shattuck. . . . 7.99 Stillwater . . . 8.07Gulf . . . . . .9.38 1/2

CORN$3.33-$3.77 per bushel.

COTTONGrade 41, Leaf 4, Staple 34 cotton

in southwestern OK - 60.00 cents per pound,

FOB rail car or truck.

KANSAS CITY GRAINWheat, No.2 Hard, bu................$ N/A-$ N/ACorn, No. 2 yellow.........................$ N/A-$ N/AMilo ...........................................................$ N/A-$ N/ASoybeans, No. 1 ..............................$ N/A-$ N/A

State Grains

CORN (CBOT)5,000 bu minimum- cents per bushelMar 16 367.50 369.25 365.25 368.75 +1 May 16 371.50 373.75 370 373.25 +1.25Jul 16 376.75 379 375.25 378.50 +1.50Sep 16 381 383.75 380 383 +1.25 Est. sales 580,020 Tue’s. sales 377,638 Tue’s open int 1,390,878 off 3204.00OATS (CBOT)5,000 bu minimum- cents per bushelMar 16 207 207.75 202 204.50 -3 May 16 209 209 203.75 207.25 -1 Jul 16 211 215.75 211 213.50 -.75Sep 16 224.25 224.25 219.50 219.50 -.25 Est. sales 2,204 Tue’s. sales 525 Tue’s open int 9,694 up 60.00SOYBEAN MEAL (CBOT)100 tons- dollars per tonMar 16 271.60 271.80 268.70 269.80 -1.50May 16 274.10 274.20 271.40 272.30 -1.50Jul 16 276.80 277.10 274.40 275.20 -1.40Aug 16 278.10 278.50 276.00 276.60 -1.40 Est. sales 123,930 Tue’s. sales 70,505 Tue’s open int 414,457 off 2279.00SOYBEAN OIL (CBOT)60,000 lbs- cents per lbMar 16 29.92 29.99 29.55 29.81 -.22May 16 30.14 30.16 29.75 30.02 -.22Jul 16 30.37 30.40 30.00 30.26 -.20Aug 16 30.44 30.45 30.06 30.32 -.20 Est. sales 127,982 Tue’s. sales 77,638 Tue’s open int 411,430 up 2127.00SOYBEANS (CBOT)5,000 bu minimum- cents per bushelMar 16 882 883.75 870.50 874 -9.50May 16 881.75 883.50 871.50 874.75 -8.25Jul 16 886.50 889 877 880 -8 Aug 16 887.75 889.25 878.50 881.50 -7.50 Est. sales 468,402 Tue’s. sales 194,256 Tue’s open int 665,786 up 1251.00WHEAT (CBOT)5,000 bu minimum- cents per bushelMar 16 473 475.50 467.25 471.50 -3 May 16 478 480 472.25 475.75 -3.25

Jul 16 483.50 486 478 481.25 -3.75Sep 16 489.50 493.25 487.25 489.75 -4 Est. sales 143,210 Tue’s. sales 75,315 Tue’s open int 395,396 off 897.00WINTER WHEAT (CBOT)5,000 bu minimum- cents per bushelMar 16 472 473.75 465 467.25 -5.50May 16 482.50 483.50 475.25 477.50 -5.25Jul 16 491 493.75 485.25 487.25 -5.25Sep 16 500 504.25 499.75 500.50 -5 Est. sales 17,508 Tue’s. sales 16,145 Tue’s open int 211,816 off 925.00CATTLE (CME)40,000 lbs.- cents per lb.Feb 16 128.20 128.77 126.30 127.25 -2.05Apr 16 129.00 129.50 127.15 128.17 -1.98Jun 16 120.35 121.22 118.77 120.05 -1.70Aug 16 116.80 117.55 115.40 116.55 -1.65 Est. sales 60,754 Tue’s. sales 61,697 Tue’s open int 275,924 up 508.00FEEDER CATTLE (CME)50,000 lbs.- cents per lb.Jan 16 154.50 156.72 152.70 155.00 -1.55Mar 16 150.00 152.20 147.77 149.72 -2.55Apr 16 150.30 151.97 148.30 149.97 -2.83May 16 150.35 151.57 148.12 149.85 -2.77 Est. sales 11,534 Tue’s. sales 11,916 Tue’s open int 36,880 off 153.00HOGS-Lean (CME)40,000 lbs.- cents per lb.Feb 16 62.95 63.52 62.10 62.72 -.13Apr 16 67.67 67.97 66.40 67.07 -.65Jul 16 77.90 78.10 77.00 77.80 -.20 Est. sales 21,908 Tue’s. sales 28,564Tue’s open int 167,196 off 550.00

Open High Low Settle Chg. Open High Low Settle Chg. Agri Markets

building to an upscale national chain on par with PF Chang’s.

Dedmon said Newcrest-Image already has a build-ing permit for the adjoin-ing Hyatt Place and is hop-ing to close on buying both properties at the same time.

The Urban Renewal Authority approved the revised design, and the plans will be resubmitted for approval by the Brick-town Urban Design Com-mittee for a vote at their February meeting.

NewcrestImage pre-viously has indicated the company hopes to start

construction on the $45 million development later this year.

The hotels are part of the Steelyard develop-ment, a mix of apartments

and retail being built immediately east by Gary Brooks. Brooks told Urban Renewal commissioners on Wednesday the project is on schedule for a March 2017 completion. He said foundations will be set for a garage next month.

Brooks said Newcrest-Image, which opened the Bricktown Holiday Inn Express last year, are a good addition to the dis-trict.

“They are professionals at every level, and they’re doing a lot of work,” Brooks said. “I would be very pleased with that product (the AC hotel) next to the $70 million development we are doing next door.”

FROM PAGE 1C

Hotel: Group wants to begin this year

The first designs for the AC and Hyatt Place hotels in Bricktown included a three-story restaurant and lounge that drew rave reviews from the Bricktown Urban Design Committee. The design was scrapped following objections by Marriott. [DRAWINGS PROVIDED BY ADG]

OIL AND GAS PRICESOklahoma crude oil prices as of 5 p.m. Wednesday:

Oklahoma Sweet:Sunoco Inc. — $23Oklahoma Sour:Sunoco Inc. — $11Oklahoma oil and gas drilling activity posted Jan. 8:

COMPLETIONNo postings.INTENT TO DRILLBlaine: Continental Resources Inc.; Reece Jane No. 1-33-4XH Well; SE1/4 SE1/4 SE1/4 SW1/4 (BHL) of 04-12N-13W; TD 25,781.

Garvin: Polk B R Inc.; Colf-ield-Fallon No. 1 Well; SW1/4 NW1/4 NE1/4 SE1/4 of 04-04N-04W; TD 11,110.

Valley Petrol Consulting Inc.; Wise No. 1 Well; C SW1/4 SW1/4 (SL) of 28-03N-03E; TD 3,000.

Kingfisher: Chaparral Energy LLC; King Koopa 1606

No. 1UMH-22 Well; SW1/4 SE1/4 SE1/4 SE1/4 (SL) of 22-16N-06W; TD 12,500.

Lincoln: American Energy - Woodford LLC; McComas 23-16N-4E No. 1MH Well; NW1/4 NW1/4 NW1/4 NW1/4 (SL) of 23-16N-04E; TD 9,500.

McClain: Eagle Exploration Production LLC; M Terry 0504 No. 1-1HW Well; SW1/4 SE1/4 SE1/4 SW1/4 (SL) of 01-05N-04W; TD 15,000.

Woods: Midstates Petroleum Co. LLC; Meier 2615 No. 3H-12 C Well; SW1/4 SE1/4 SW1/4 SE1/4 (SL) of 01-26N-15W; TD 11,350.

Midstates Petroleum Co. LLC; Meier 2615 No. 4H-12 D Well; SW1/4 SE1/4 SW1/4 SE1/4 (SL) of 01-26N-15W; TD 11,350.

SOURCE:  OIL-LAW RECORDS CORP.

LIVESTOCKWednesday’s livestock report from the Oklahoma City Stockyards:

Receipts: 449; Last week: 423; Last year: 772

Receipts Monday: 7,803Compared to last week: Slaughter cows steady to $4 higher. Slaughter bulls $1 higher. Packer demand moderate to good for limited receipts. A total of 189 cows and bulls sold with 65 percent going to packers.

Slaughter Cows: 1,000-1,550 lbs. Average dressing $68-$73.50; High dressing $73-$79; Low dressing $64-$68. 900-1,000 lbs. Light weight cows Average dress-ing $66-$67; High dressing and Low dressing not tested.

Slaughter Bulls: 1,500-2,100 lbs. Average dressing $99-$101; High dressing $102-$106; Low dressing $87-

$94.50.Estimated dressed cost at the Oklahoma National Stock-yards: Lean cows $153.15; Boners $144.45; Breakers $132.30. few Light weight cows $152.90. Bulls $175.85.

Replacement Cows: Pre-tested for pregnancy, and age. Medium and Large No. 1-2: 2-6 year old 1,025-1,175 lb. cows 3-6 months bred average to high quality black $1,575-$1,675/head; 5-6 year old 1,175-1,400 lb. cows 2-3 months bred average quality black $1,400-$1,525/head; 8-10 year old 1,100-1,400 lb. cows 6-7 months bred aver-age quality $1,050-$1,360/head.

SOURCE: USDA-OKLAHOMA AGRICULTURE DEPARTMENT

MARKET NEWS SERVICE

Southwest Bancorp reports quarterly earningsEditor’s note: Because

of a reporting error, some of the numbers were incor-rect in an article Wednes-day about Southwest Bancorp’s fourth-quarter earnings. The Oklahoman regrets the error.

STILLWATER — Southwest Bancorp Inc. on Tuesday reported net income for the fourth quarter of 2015 of $4.6 million, or 23 cents a share, compared to $5.9 million, or 30 cents a share in the year-ago quarter. Due to its improving loan portfolio, Southwest Ban-corp booked a $600,000 credit in its loan loss provi-sion in the fourth quarter, and a $3.6 million credit for the year.

For the full year, the company’s net income totaled $17.4 million, or 90 cents a share, compared to $21 million, or $1.07 a share in 2014.

Southwest completed its purchase of Edmond-based First Commercial Bancshares Inc. during the fourth quarter.

Total loan growth was $231.3 million, includ-ing $194 million of First Commercial Bancshares acquired loans, or 15 per-cent, for the fourth quar-ter and $379.4 million, or 27 percent, for the year. Core loan growth for the year, excluding the FCBI acquisition, was $185.4 million, or 13 percent.

“Our financial results and the solid loan growth for the fourth quarter and the full year reflect the excellent work of our banking associates,” CEO Mark Funke said. “We will continue to focus our company on producing consistent, conservative, and sustainable earnings through the expansion of our revenue base while prudently managing risk

and expenses.”Southwest’s total assets

were $2.4 billion at the end of the fourth quarter, up $297 million from Sept. 30, 2015. Total loans were $1.8 billion at the end of the fourth quarter, up $231 million from the end of the previous quarter.

Southwest Bancorp said it had eight consecutive quarters of loan growth. Its quarterly net interest margin improved to 3.48 percent at Dec. 31, 2015, compared to 3.34 percent at the end of the previous quarter.

Cash and cash equiva-lents were $78.1 million as of Dec. 31, up $9.5 million from three months earlier.

Also on Tuesday, South-west directors declared a quarterly cash dividend of 8 cents a share payable Feb. 12 to shareholders as of Jan. 29.

The payout is up from 6 cents in the previous quar-

ter.On Wednesday, the

company’s stock closed up 59 cents to $16.12 per share, a 3.80 percent gain.

“OKSB remains the only stock with material energy exposure that we arerecommending, and we don’t see anything in these results to dissuade us from that stance,” analyst Joe Fenech with Hovde Group wrote in a report. “Setting energy aside for a moment, the company is improving the profitability profile as promised, which should translate to multiple expansion over time. In the meantime, the valuation, coupled with a significant capital cushion to help absorb any potential prob-lems should the situation worsen from here, offers in our view a considerable measure of downside sup-port while we await clarity on recent macro develop-ments.”

FROM STAFF REPORTS

Public meeting grows heatedover decade-old oil leak in Gulf

BATON ROUGE, La. — A decade-old oil leak that could last for another century was caused by an “act of God” during a hurricane in the Gulf of Mexico, the president of the com-pany responsible said Wednesday.

The assertion from Taylor Energy President William Pecue didn’t sway environmental advocates who attended a daylong meeting in Baton Rouge, where the company satisfied terms of a court settlement by pre-senting information about its efforts to end the leak off Louisiana’s coast.

Pecue, citing “potential future litigation,” declined to answer an audience member’s written question pressing him to explain why he con-siders the leak to be an act of God.

“Defining why we believe this is an ‘act of God event’ gets into a legal definition that is not appropriate for today,” he said.

In September 2004, waves whipped up by Hurricane Ivan triggered an underwater mud-slide, which toppled a Taylor Ener-gy-owned platform and buried a cluster of its oil wells under mounds of sediment.

Oil slicks often stretch for miles about 10 miles off Louisiana’s coast. Federal regulators believe oil is still coming out at the site, but Taylor Energy claims the slicks result from residual oil oozing from sediment on

the seafloor.Taylor Energy has said nothing can

be done to completely eliminate the chronic sheens. Regulators recently estimated the leak could last a cen-tury or more if left unchecked.

An Associated Press investiga-tion last year revealed evidence that the leak is worse than the company, or government, publicly reported during their secretive response. Pre-sented with AP’s findings, the Coast Guard provided a new leak estimate that’s about 20 times larger than one cited by the company in a court filing last year.

Retired Army Lt. Gen. Russel Honore, who founded a coalition of environmental groups but is bet-ter known for helping restore order in New Orleans after Hurricane Katrina, said he wants to see more transparency from Taylor Energy and the government. He called the leak a “man-made disaster.”

“If we didn’t put the (platform) there, this incident wouldn’t have happened,” he said.

Honore walked out of the meet-ing following a testy exchange with Pecue, who refused to answer when Honore asked him to explain why the company has downplayed the leak’s potential environmental impact.

Pecue said he was only taking written questions and told Honore he would have to leave if he persisted in asking his question. Honore left after Pecue threated to “shut this

down.”Earlier, Pecue said the company

cares “very deeply” about the envi-ronment. Taylor Energy says it has spent more than $480 million on its efforts to stop the leak.

“This event hits home for us,” said Pecue, the last remaining full-time employee at the New Orleans-based company.

The public meeting is a require-ment of a court settlement that Taylor Energy reached in September with environmental groups led by the New York City-based Water-keeper Alliance, which accused the company of withholding informa-tion about the leak.

Larissa Liebmann, an attorney for the Waterkeeper Alliance, said Taylor Energy knew the risks before it drilled several wells in a mud-slide-prone area of the Gulf.

“It wasn’t an unforeseen thing,” she said.

Pecue and company-hired experts made most of the presentations during the meeting, the first pub-lic forum Taylor Energy has hosted since the leak started more than 11 years ago.

Taylor Energy, once one of the Gulf’s largest operators, sold all its offshore leases and oil and gas inter-ests in 2008. Its founder, Patrick Taylor, died in 2004. The company is led by his widow, Phyllis Taylor, a prominent philanthropist and polit-ical donor.

BY MICHAEL KUNZELMANAssociated Press