In 2021, Company W elected under Section 179 to expense $19,300 of the cost of qualifying property. However, it could deduct only $15,000 of the expense because of the taxable income limitation. In 2022, Company W's taxable income before any Section 179 deduction was $1,812,000. Required: a. Compute its 2022 Section 179 deduction if the total cost of qualifying property purchased in 2022 was $13,600. Deduction? b. Compute its 2022 Section 179 deduction if the total cost of qualifying property purchased in 2022 was $1,078,000. Deduction?

In 2021, Company W elected under Section 179 to expense $19,300 of the cost of qualifying property. However, it could deduct only $15,000 of the expense because of the taxable income limitation. In 2022, Company W's taxable income before any Section 179 deduction was $1,812,000. Required: a. Compute its 2022 Section 179 deduction if the total cost of qualifying property purchased in 2022 was $13,600. Deduction? b. Compute its 2022 Section 179 deduction if the total cost of qualifying property purchased in 2022 was $1,078,000. Deduction?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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