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: (Use MACRS
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: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
Placed in | |||
Asset | Service | Basis | |
Machinery | September 12 | $ | 1,370,000 |
Computer equipment | February 10 | 405,000 | |
Office building | April 2 | 520,000 | |
Total | $ | 2,295,000 | |
|
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?
c. The vehicle cost $33,000 and business use is 100 percent (ignore 179 expense).
d The vehicle cost $85,000, and business use is 100 percent for
e. The vehicle cost $85,000, and she used it 80 percent for business.
f . The vehicle cost $85,000, and she used it 80 percent for business. She sold it on March 1 of year 2 .
g .The vehicle cost $85,000, and she used it 20 percent for business.
h. The vehicle cost $85,000, and is an SUV that weighs 6,500 pounds. Business use was 100 percent.
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