a. What is the maximum amount of §179 expense ACW may deduct for 2021? b. What is the maximum total depreciation that ACW may deduct in 2021 on the assets it placed in service in 2021? ( intermediato calculations and twhole dollar amount 1

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume that ACW Corporation has 2021 taxable income of $1,500,000 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
Machinery
Computer equipment
Delivery truck
Qualified improvement property
Total
Placed in Service
September 12
February 10
August 21
April 2
Basis
$ 470,000
70,000
93,000
a. Maximum §179 expense for 2021
b. Maximum total deductible depreciation for 2021
1,380,000
$ 2,013,000
a. What is the maximum amount of §179 expense ACW may deduct for 2021?
b. 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.)
Transcribed Image Text:Assume that ACW Corporation has 2021 taxable income of $1,500,000 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 Machinery Computer equipment Delivery truck Qualified improvement property Total Placed in Service September 12 February 10 August 21 April 2 Basis $ 470,000 70,000 93,000 a. Maximum §179 expense for 2021 b. Maximum total deductible depreciation for 2021 1,380,000 $ 2,013,000 a. What is the maximum amount of §179 expense ACW may deduct for 2021? b. 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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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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