Question
AMP Corporation (calendar-year-end) has 2019 taxable income of $1,900,000 for purposes of computing the 179 expense. During 2019, AMP acquired the following assets: (UseMACRSTable 1,Table
AMP Corporation (calendar-year-end) has 2019 taxable income of $1,900,000 for purposes of computing the 179 expense. During 2019, AMP acquired the following assets: (UseMACRSTable 1,Table 2,Table 3,Table 4andTable 5.)
Asset Placed in Service Basis
Machinery September 12 $1,410,000
Computer equipment February 10 425,000
Office building April 2 540,000
Total$2,375,000
a.What is the maximum amount of 179 expense AMP may deduct for 2019?
b.What is the maximum total depreciation, including 179 expense, that AMP may deduct in 2019 on the assets it placed in service in 2019, assuming no bonus depreciation?(Round your intermediate calculations to the nearest whole dollar amount.)
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