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Problem 10-60 (LO 10-2, LO 10-3) (Static) Assume that ACW Corporation has 2023 taxable income of $1,500,000 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.) Asset Placed in Service Machinery September 12 Computer equipment February 10 Delivery truck August 21 Qualified real property (MACRS, 15 year, 150% DB) April 2 Total Basis $470,000 70,000 93,000 1,380,000 $ 2,013,000 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. Answer is complete but not entirely correct. a. Maximum §179 expense for 2023 $ 1,080,000 x b. Maximum total deductible depreciation for 2023 $ 1,194,763 x

Problem 10-60 (LO 10-2, LO 10-3) (Static) Assume that ACW Corporation has 2023 taxable income of $1,500,000 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.) Asset Placed in Service Machinery September 12 Computer equipment February 10 Delivery truck August 21 Qualified real property (MACRS, 15 year, 150% DB) April 2 Total Basis $470,000 70,000 93,000 1,380,000 $ 2,013,000 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. Answer is complete but not entirely correct. a. Maximum §179 expense for 2023 $ 1,080,000 x b. Maximum total deductible depreciation for 2023 $ 1,194,763 x

FINANCIAL ACCOUNTING
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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Problem 10-60 (LO 10-2, LO 10-3) (Static) Assume that ACW Corporation has 2023 taxable income of $1,500,000 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.) Asset Placed in Service Machinery September 12 Computer equipment February 10 Delivery truck August 21 Qualified real property (MACRS, 15 year, 150% DB) April 2 Total Basis $470,000 70,000 93,000 1,380,000 $ 2,013,000 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. Answer is complete but not entirely correct. a. Maximum §179 expense for 2023 $ 1,080,000 x b. Maximum total deductible depreciation for 2023 $ 1,194,763 x
Transcribed Image Text:Problem 10-60 (LO 10-2, LO 10-3) (Static) Assume that ACW Corporation has 2023 taxable income of $1,500,000 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.) Asset Placed in Service Machinery September 12 Computer equipment February 10 Delivery truck August 21 Qualified real property (MACRS, 15 year, 150% DB) April 2 Total Basis $470,000 70,000 93,000 1,380,000 $ 2,013,000 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. Answer is complete but not entirely correct. a. Maximum §179 expense for 2023 $ 1,080,000 x b. Maximum total deductible depreciation for 2023 $ 1,194,763 x
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