Assume that ACW Corporation has 2022 taxable income of $1,720,000 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 Machinery Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150s 08) Total Placed in Service 12-September 10-February 21-August 2-April Basis $ 492,000 92,000 115,000 1,402,000 $ 2,101,000 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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Chapter1: Financial Statements And Business Decisions
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Assume that ACW Corporation has 2022 taxable income of $1,720,000 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
Machinery
Computer equipment
Delivery truck
Qualified real property (MACRS, 15
year, 150% DB)
Total
Placed in Service
12-September
10-February
21-August
2-April
Basis
$ 492,000
92,000
115,000
1,402,000
$ 2,101,000
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 $1,720,000 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 Machinery Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total Placed in Service 12-September 10-February 21-August 2-April Basis $ 492,000 92,000 115,000 1,402,000 $ 2,101,000 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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