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Assume AMP Corporation (calendar year end) has 2017 taxable income of $900,000 for purposes of computing the 179 expense. During 2017, AMP acquired the following

Assume AMP Corporation (calendar year end) has 2017 taxable income of $900,000 for purposes of computing the 179 expense. During 2017, AMP acquired the following assets:

Placed in
Asset 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 2017?

b. What is the maximum total depreciation expense, including 179 expense, that AMP may deduct in 2017 on the assets it placed in service in 2017 assuming no bonus depreciation?

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