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AMP Corporation (calendar-year-end) has 2015 taxable income of $900,000 before the 179 expense. During 2015, AMP acquired the following assets: (Use MACRS Table 1, Table

AMP Corporation (calendar-year-end) has 2015 taxable income of $900,000 before the 179 expense. During 2015, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 andTable 5.)

Asset Placed in Service Basis
Machinery September 12 $1,550,000
Computer equipment February 10 365,000
Office building April 2 480,000
Total $2,395,000
A)

What is the maximum amount of 179 expense AMP may deduct for 2015 (assume the 2014 179 limits are extended to 2015)?

B)What is the maximum total depreciation expense, including 179 expense, that AMP may deduct in 2015 on the assets it placed in service in 2015 assuming no bonus depreciation (assume the 2014 179 limits are extended to 2015)?

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