AMP Corporation (calendar-year-end) has 2019 taxable income of $1,900,000 for purposes of computing the §179 expense. During 2019, AMP acquired the following assets: Placed in AssetService BasisMachinerySeptember 12$1,470,000Computer equipmentFebruary 10 455,000Office buildingApril 2 570,000Total $2,495,000 a. What is the maximum amount of §179 expense AMP may deduct for 2019? B. What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2019 on the assets it placed in service in 2019, assuming no bonus depreciation?

Depreciation:- Depreciation referred as decreasing in the value of an asset on a regular basis until…

Answered: ,470,000 Computer equipment February 10…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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AMP Corporation (calendar-year-end) has 2019 taxable income of $1,900,000 for purposes of computing the §179 expense. During 2019, AMP acquired the following assets:

	Placed in
Asset	Service		Basis
Machinery	September 12	$	1,470,000
Computer equipment	February 10		455,000
Office building	April 2		570,000
Total		$	2,495,000

a. What is the maximum amount of §179 expense AMP may deduct for 2019?

B. What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2019 on the assets it placed in service in 2019, assuming no bonus depreciation?

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