Assume that ACW Corporation has 2019 taxable income of $1,500,000 for purposes of computing the $179 expense. The company acquired the following assets during 2019 (assume no bonus depreciation: (Use MACRS Table 1. Table 2 and Table 5.) Asset Machinery Computer equipment Delivery truck Qualitled improvement property Total Placed in Service September 12 February 19 August 21h April 2 1 Basis $ 478.eee 7 0.ece 93,eee ,388,eee $2,013, eee a. What is the maximum amount of $179 expense ACW may deduct for 2019? b. What is the maximum total depreciation that ACW may deduct in 2019 on the assets it placed in service in 2019? (Round your Intermediate computations to the nearest whole dollar amount.) a b. $179 expense for 2019 Total deductible depreciation for 2010 Year 6 7.37 9 Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% Year 2 44.45 32.0024.49 18.00 9.50 7.219 Year 3 14.81 19.2017.49 14.408.556.677 Year 4 7.41 11.52 12.49 11.52 7.70 6.177 Year 5 11.528.939.22 6.933.713 5176 8.92 6.23 5.285 Year 7 8.93 6 .55 5.90 4.888 Year S 4.466 .555 .90 4.522 Year 6 .56 5.914 .462 Year 10 6.555.904.461 Year 11 3 .28 5.914 .462 Year 12 5 .90 4.461 Year 13 5.91 4.462 Year 14 5 .904 .461 Year 15 5 914 .462 Year 16 2.954.461 Year 17 | 4.462 Year 18 4 .461 Year 19 . 4.462 Year 20 4.461 Year 21 01231 TABLE 2 MACRS Mid-Quarter Convention: For property placed in service doring the first quarter Depreciation Rate for Recovery Period Year 7-Year Year 1 35.0096 25.00 Year 2 26.00 21.43 15.60 15.31 10.93 8.75 Year 6 1.38 8.74 Year 7 8.75 Years 100 Year 3 TABLE 26 MACRS Mid-Quarter Convention: For proper placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 2 5.00% 17.85% Year? 30.00 23.471 Year 3 18.00 16.76 Year 4 11 37 11.97 Year 5 11:37 8.87 Year 6 426 8.87 Year 7 8 .87 3.34 TABLE 24 MACRS Mid-Quarter Convention: For in cervice during the third quarter Depreciation Rate for Recovery Period 3-Year 7-Year Year 1 1 5.00% 10.71% Year 2 3 4.00 25.51 8.87 Years Year 3 20.40 1922 Year 4 12 24 Year B 11.30 9.30 Year 6 .06 Year Years TABLE 2 MACRS-Nd Quarter Convention: For proper placed in service during the fourth quarte Depreciation Rate for Recovery Period -Year Year Year 1 5.0093 .57% Year 38.00 27.35 Year 3 2 2.50 19.69 Year 4 13.68 14 06 Year 10.94 10.04 6 95$ Year 7 Month Il TABLE & Nordestial Real Property -fouth Couration Straight Line-39 Year for et placed in rvices or after May 13, 1993) Mouth Property Placed in Service Month 1 Month 3 Month 3 Month 4 Month Month 6 Month Meath Meath 9 Year 24619 224720334191991605413919110963 Year 2-39 2.564 2564 2564 22564 2564 2564 2562 2564 2 564 Year 10 0 107 0321 0535 0.749 0963 1 771391 1605 1519 Month 10 05359 2 254 2013 Mouth 13 0.1019 2 554 22564
