Problem 10-60 (LO 10-2, LO 10-3) (Algo) Assume that ACW Corporation has 2023 taxable income of $1,560,000 for purposes of computing the $179 expense. The company acquired the following assets during 2023 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.) Machinery Asset Computer equipment Placed in Service 12-September Basis $ 476,000 Delivery truck 10-February 21-August 76,000 Qualified real property (MACRS, 15 year, 150% DB) 02-April Total 99,000 1,386,000 $ 2,037,000 a. What is the maximum amount of $179 expense ACW may deduct for 2023? b. What is the maximum total depreciation that ACW may deduct in 2023 on the assets it placed in service in 2023? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2023 b. Maximum total deductible depreciation for 2023
Problem 10-60 (LO 10-2, LO 10-3) (Algo) Assume that ACW Corporation has 2023 taxable income of $1,560,000 for purposes of computing the $179 expense. The company acquired the following assets during 2023 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.) Machinery Asset Computer equipment Placed in Service 12-September Basis $ 476,000 Delivery truck 10-February 21-August 76,000 Qualified real property (MACRS, 15 year, 150% DB) 02-April Total 99,000 1,386,000 $ 2,037,000 a. What is the maximum amount of $179 expense ACW may deduct for 2023? b. What is the maximum total depreciation that ACW may deduct in 2023 on the assets it placed in service in 2023? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2023 b. Maximum total deductible depreciation for 2023
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 10-60 (LO 10-2, LO 10-3) (Algo)
Assume that ACW Corporation has 2023 taxable income of $1,560,000 for purposes of computing the $179 expense. The company
acquired the following assets during 2023 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.)
Machinery
Asset
Computer equipment
Placed in Service
12-September
Basis
$ 476,000
Delivery truck
10-February
21-August
76,000
Qualified real property (MACRS, 15
year, 150% DB)
02-April
Total
99,000
1,386,000
$ 2,037,000
a. What is the maximum amount of $179 expense ACW may deduct for 2023?
b. What is the maximum total depreciation that ACW may deduct in 2023 on the assets it placed in service in 2023?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
a. Maximum §179 expense for 2023
b. Maximum total deductible depreciation for 2023
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