Assume that ACW Corporation has 2020 taxable income of $1,780,000 for purposes of computing the $179 expense. The company acquired the following assets during 2020 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5). Asset Machinery Computer equipment Delivery truck Qualified improvement property Total Placed in Service 12 September 10 February 21 August 2 April Basis $ 498,000 98,000 121,000 1,408,000 $2,125,000 a. What is the maximum amount of $179 expense ACW may deduct for 2020? b. What is the maximum total depreciation that ACW may deduct in 2020 on the assets it placed in service in 2020? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. $ 1040,000 a. Maximum $179 expense for 2020 Maximum total deductible depreciation for 2020 $ 1,199.494 b. Table 1 MACRS Half-Year Convention 20-Year 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 Year 1 3.750% Year 2 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7.41 11.52 12.49 11.52 7.70 6.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92 7.37 6.23 5.285 Year 7 8.93 6.55 5.90 4.888 Year 8 4.46 6.55 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 6.55 5.90 4.461 Year 1l 3.28 5.91 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 5.90 4.461 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 +.+62 Year 20 7.461 Year 21 2.231 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the fir Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year S 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the sec 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 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.000 10.71% Year 2 34.00 25.51 Veara 20.40 18.20 TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line39 Years (for assets placed in service on or after May 13, 1993) Month 1 Month 2 Month 3 Month 4 Month 8 Month 9 Month 10 Month 11 Month 12 Month Property Placed in Service Month 5 Month 6 Month 7 1.605% 1.391% 1.177% 2.564 2.564 2.564 Year 1 2.461% 2.247% 2.033% 1.819% 0.749% 0.107% 0.963% 2.564 0.535% 2.564 0.321% 2.564 Year 2-39 2.564 2.564 2.564 2.564 21564 2.564 Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.247 2.461