1Assume that ACW Corporation has 2021 taxable income of $1,940,000 for purposes of computing the §179 expense. The company acquired the following assets during 2021 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.) AssetPlaced in ServiceBasisMachinery12-Sep$ 514,000Computer equipment10-Feb114,000Delivery truck21-Aug137,000Qualified improvement property02-Apr1,424,000Total $ 2,189,000 What is the maximum amount of §179 expense ACW may deduct for 2021?What is the maximum total depreciation that ACW may deduct in 2021 on the assets it placed in service in 2021? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Solution: a) Computation of the maximum section 179 deduction Total of Section 179 Qualified…

Answered: 1 | bartleby

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume that ACW Corporation has 2021 taxable income of $1,940,000 for purposes of computing the §179 expense. The company acquired the following assets during 2021 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.)

Asset	Placed in Service	Basis
Machinery	12-Sep	$ 514,000
Computer equipment	10-Feb	114,000
Delivery truck	21-Aug	137,000
Qualified improvement property	02-Apr	1,424,000
Total		$ 2,189,000

What is the maximum amount of §179 expense ACW may deduct for 2021?
What is the maximum total depreciation that ACW may deduct in 2021 on the assets it placed in service in 2021? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

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