Assume that ACW Corporation has 2017 taxable income of $1,000,000 for purposes of computing the §179 expense. The company acquired the following assets during 2017(assume no bonus depreciation): (Use MACRS Table 1, Table 2) Asset Machinery Computer equipment Delivery truck Qualified leasehold improvements Total Placed in Service September 12 February 10 August 21 April 2 a. §179 expense for 2017 b. Total deductible depreciation for 2017 a. What is the maximum amount of §179 expense ACW may deduct for 2017? Basis $ 470,000 70,000 93,000 380,000 $1,013,000 b. What is the maximum total depreciation expense that ACW may deduct in 2017 on the assets it placed in service in 2017? $ 510,000
Assume that ACW Corporation has 2017 taxable income of $1,000,000 for purposes of computing the §179 expense. The company acquired the following assets during 2017(assume no bonus depreciation): (Use MACRS Table 1, Table 2) Asset Machinery Computer equipment Delivery truck Qualified leasehold improvements Total Placed in Service September 12 February 10 August 21 April 2 a. §179 expense for 2017 b. Total deductible depreciation for 2017 a. What is the maximum amount of §179 expense ACW may deduct for 2017? Basis $ 470,000 70,000 93,000 380,000 $1,013,000 b. What is the maximum total depreciation expense that ACW may deduct in 2017 on the assets it placed in service in 2017? $ 510,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume that ACW Corporation has 2017 taxable income of $1,000,000 for
purposes of computing the §179 expense. The company acquired the
following assets during 2017(assume no bonus depreciation): (Use MACRS
Table 1, Table 2)
Asset
Machinery
Computer equipment
Delivery truck
Qualified leasehold improvements
Total
Placed in
Service
September 12
February 10
August 21
April 2
a. What is the maximum amount of §179 expense ACW may deduct for
2017?
a. §179 expense for 2017
b. Total deductible depreciation for 2017
Basis
$ 470,000
70,000
93,000
380,000
$1,013,000
b. What is the maximum total depreciation expense that ACW may deduct
in 2017 on the assets it placed in service in 2017?
$ 510,000
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