Assume that ACW Corporation has 2021 taxable income of $1,920,000 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 Machi nery Computer equipment Delivery truck Qualified improvement property Placed in Service 12-Sep 10-Feb 21-Aug 02-Apr Basis $ 512,000 112,000 135,000 1,422,000 $ 2,181,000 Total 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.) a. Maximum §179 expense for 2021 b. Maximum total deductible depreciation for 2021

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Assume that ACW Corporation has 2021 taxable income of $1,920,000 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.)
Bas is
$ 512,000
112,000
135,000
1,422,000
Asset
Machi nery
Computer equipment
Delivery truck
Qualified improvement property
Placed in Service
12-Sep
10-Feb
21-Aug
02-Apr
Total
$ 2,181,000
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 20021? (Round your
intermediate calculations and final answer to the nearest whole dollar amount.)
a. Maximum §179 expense for 2021
b. Maximum total deductible depreciation for 2021
Transcribed Image Text:Assume that ACW Corporation has 2021 taxable income of $1,920,000 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.) Bas is $ 512,000 112,000 135,000 1,422,000 Asset Machi nery Computer equipment Delivery truck Qualified improvement property Placed in Service 12-Sep 10-Feb 21-Aug 02-Apr Total $ 2,181,000 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 20021? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) a. Maximum §179 expense for 2021 b. Maximum total deductible depreciation for 2021
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