Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that ACW Corporation has 2021 taxable income of $1,940,000 for purposes of computing the 179 expense. The company acquired the following assets during 2021

Assume that ACW Corporation has 2021 taxable income of $1,940,000 for purposes of computing the 179 expense. The company acquired the following assets during 2021 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.)

Asset Placed in Service Basis
Machinery 12-Sep $ 514,000
Computer equipment 10-Feb 114,000
Delivery truck 21-Aug 137,000
Qualified improvement property 02-Apr 1,424,000
Total $ 2,189,000

  1. What is the maximum amount of 179 expense ACW may deduct for 2021?
  2. What is the maximum total depreciation that ACW may deduct in 2021 on the assets it placed in service in 2021? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Managerial Accounting Concepts

Authors: Edmonds, Tsay, olds

6th Edition

71220720, 78110890, 9780071220729, 978-0078110894

More Books

Students also viewed these Accounting questions

Question

What are the factors that influence make or buy decisions ?

Answered: 1 week ago