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.) Asset Machinery Computer equipment office building Total Placed in Service September 12 February 10 April 2 Basis 5 1,378,000 405,000 520.00 $ 2,295,000 a. What is the maximum amount of 5179 expense AMP may deduct for 2019? Maximum $179 expenne deductible 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.) Asset Machinery Computer equipment office building Total placed in Service September 12 February 10 April 2 Basis $ 1,370,000 405,000 520,000 $ 2,295,000 b. What is the maximum total depreciation, including 5179 expense, that AMP may deduct in 2019 on the as ets it placed in service in 2019. assuming no bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.) Maximum total depreciation (including 5179 expense) Table 1 MACRS Half Year Convention Year 1 Year 2 Year 3 20-Year 3.750% 7.219 6,677 6.177 5.713 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 44.45 32.00 24.49 18.00 9.50 14.81 19.20 17.49 14.40 8.55 7.41 11.52 12.49 11.52 7.70 11.52 8.93 9.22 6.93 5.76 8.92 7.37 6.23 8.93 6.55 5.90 4.46 6.55 5.90 6.56 591 6.55 5.90 3.28 5.91 5.90 5.91 5.90 5:285 Year 4 Year 5 Year 6 Year 7 Years Year 9 Year 10 Year 11 Year 12 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 5.91 2.95 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 4.462 4.461 4.462 4.461 2.231 TABLE 2 MACRS AGQuarter Convention: For property placed in service der the first quarter Depreciation Rate for Recovery Period 3-Year 7-Year Year 1 35.00% 25.00% Year: 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 3 11.01 8.75 Year 6 138 8.74 Year 7 8.75 Year 8 1.09 TABLE 26 MACRS MG Quarter Conventions For property placed in centre during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23:47 Year 3 18.00 16.76 Year 4 11.37 1197 Years 11.37 8.57 Year 6 4.26 8.37 Year 7 8.87 Years 3.34 TABLE 2 MACRS Mid Quarter Convention For propers placed beredar Share Depreciation Rate for Recovery Period 5 Year 7-Year Year! 15.00% 10.71% Year 2 34.00 25.51 Year 3 20:40 1822 Year 4 12.24 13.02 Year 11.30 9.30 Year 6 906 8.85 Year 7 8.86 Years 5.53 TABLE 28 MACRS Mid Quarter Convention For propery placed service during the fourth are Depreciation Rate for Recovery Period -Year 7-Year Year 1 5.00% 3.57% Year: 38.00 27.55 Year 3 1968 Year 15.68 14.06 Years 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Years 7.64
