Assume that ACW Corporation has 2021 taxable income of $1,640,000 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 12-Sep 10-Feb 21-Aug 02-Apr a. Maximum §179 expense for 2021 b. Maximum total deductible depreciation for 2021 Basis $ 484,000 84,000 107,000 1,394,000 $ 2,069,000 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.)
Assume that ACW Corporation has 2021 taxable income of $1,640,000 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 12-Sep 10-Feb 21-Aug 02-Apr a. Maximum §179 expense for 2021 b. Maximum total deductible depreciation for 2021 Basis $ 484,000 84,000 107,000 1,394,000 $ 2,069,000 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Assume that ACW Corporation has 2021 taxable income of $1,640,000 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
12-Sep
10-Feb
21-Aug
02-Apr
a. Maximum §179 expense for 2021
b. Maximum total deductible depreciation for 2021
Basis
$ 484,000
84,000
107,000
1,394,000
$ 2,069,000
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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