Problem 10-60 (LO 10-2, LO 10-3) (Algo) Assume that ACW Corporation has 2021 taxable income of $1,680,000 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.) Machinery Asset Computer equipment Delivery truck Qualified improvement property Total Placed in Service 12-Sep Basis $ 488,000 10-Feb 21-Aug 02-Apr 88,000 111,000 1,398,000 $ 2,085,000 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.) Answer is complete but not entirely correct. a. Maximum §$179 expense for 2021 $ 1,050,000 b. Maximum total deductible depreciation for 2021 $ 1,166,263 x
Problem 10-60 (LO 10-2, LO 10-3) (Algo) Assume that ACW Corporation has 2021 taxable income of $1,680,000 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.) Machinery Asset Computer equipment Delivery truck Qualified improvement property Total Placed in Service 12-Sep Basis $ 488,000 10-Feb 21-Aug 02-Apr 88,000 111,000 1,398,000 $ 2,085,000 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.) Answer is complete but not entirely correct. a. Maximum §$179 expense for 2021 $ 1,050,000 b. Maximum total deductible depreciation for 2021 $ 1,166,263 x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Problem 10-60 (LO 10-2, LO 10-3) (Algo)
Assume that ACW Corporation has 2021 taxable income of $1,680,000 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.)
Machinery
Asset
Computer equipment
Delivery truck
Qualified improvement property
Total
Placed in Service
12-Sep
Basis
$ 488,000
10-Feb
21-Aug
02-Apr
88,000
111,000
1,398,000
$ 2,085,000
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.)
Answer is complete but not entirely correct.
a. Maximum §$179 expense for 2021
$
1,050,000
b. Maximum total deductible depreciation for 2021
$
1,166,263 x
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