Question
A textile company purchased the following assets throughout 2020: Asset Placed in service Initial Basis Land for mill January 1 $1,000,000 Mill building January 1
A textile company purchased the following assets throughout 2020:
Asset | Placed in service | Initial Basis |
Land for mill | January 1 | $1,000,000 |
Mill building | January 1 | $300,000 |
Equipment (new) | March 4 | $1,800,000 |
Small used truck for deliveries | June 8 | $25,000 |
Total | $3,125,000 |
What is the maximum total depreciation expense possible that the corporation may deduct in 2020? Assume that the land and mill building do not qualify as qualified real property for Sec. 179 and that the company has sufficient taxable income that it creates no binding limitation on any potential Sec. 179 expense (if applicable).
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Daniel Short
8th edition
78025559, 978-0078025556
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