Question
AMP Corporation (calendar-year-end) has 2020 taxable income of $1,900,000 for purposes of computing the (179) expense. During 2020, AMP acquired the following assets: ASSET PLACED
AMP Corporation (calendar-year-end) has 2020 taxable income of $1,900,000 for purposes of computing the (179) expense. During 2020, AMP acquired the following assets:
| ASSET | PLACED IN SERVICE | BASIS |
| machinery | september 12 | $1,380,000 |
| computer equipment | february 10 | $410,000 |
| office building | april | $525,000 |
a. what is the maximum amount of 179 expense AMP may deduct for 2020?
b. what Is the maximum total depreciation, including 179 expense, that AMP may deduct in 2020 on the assets it placed in service in 2020, assuming no bonus depreciation?
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Strategic Audits For Continuous Business Improvement
Authors: Parbatee Chang
2nd Edition
1507679483, 978-1507679487
