Assume that ACW Corporation has 2022 taxable income of $1,600,000 for purposes of computing the $179 expense. The company acquired the following assets during 2022 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.) Asset Placed in Service Machinery 12-September Basis $ 480,000 Computer equipment Delivery truck 10-February 21-August Qualified real property (MACRS, 15 year, 150% DB) 2-April Total 80,000 103,000 1,390,000 $ 2,053,000 a. What is the maximum amount of $179 expense ACW may deduct for 2022? b. What is the maximum total depreciation that ACW may deduct in 2022 on the assets it placed in service in 2022? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2022 b. Maximum total deductible depreciation for 2022

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Assume that ACW Corporation has 2022 taxable income of $1,600,000 for purposes of computing the $179 expense. The company
acquired the following assets during 2022 (assume no bonus depreciation): (Use MACRS Table 1. Table 2 and Table 5.)
80,000
103,000
Asset
Machinery
Placed in Service
12-September
Basis
$ 480,000
Computer equipment
Delivery truck
10-February
21-August
Qualified real property (MACRS, 15
year, 150% DB)
2-April
Total
1,390,000
$ 2,053,000
a. What is the maximum amount of $179 expense ACW may deduct for 2022?
b. What is the maximum total depreciation that ACW may deduct in 2022 on the assets it placed in service in 2022?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
a. Maximum §179 expense for 2022
b. Maximum total deductible depreciation for 2022
Transcribed Image Text:Assume that ACW Corporation has 2022 taxable income of $1,600,000 for purposes of computing the $179 expense. The company acquired the following assets during 2022 (assume no bonus depreciation): (Use MACRS Table 1. Table 2 and Table 5.) 80,000 103,000 Asset Machinery Placed in Service 12-September Basis $ 480,000 Computer equipment Delivery truck 10-February 21-August Qualified real property (MACRS, 15 year, 150% DB) 2-April Total 1,390,000 $ 2,053,000 a. What is the maximum amount of $179 expense ACW may deduct for 2022? b. What is the maximum total depreciation that ACW may deduct in 2022 on the assets it placed in service in 2022? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2022 b. Maximum total deductible depreciation for 2022
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