Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that ACW Corporation has 2022 taxable Income of $1,500,000 for purposes of computing the $179 expense. The company acquired the following assets during

image text in transcribed

Assume that ACW Corporation has 2022 taxable Income of $1,500,000 for purposes of computing the $179 expense. The company acquired the following assets during 2022 (assume no bonus depreciation): (Use MACRS Table 1. Table 2 and Table 5.) Machinery Computer equipment Asset Placed in Service September 12 February 10 August 21 Delivery truck Qualified real property (MACRS, 15 year, 150% April 2 DB) Total Basis $470,000 70,000 93,000 1,380,000 $ 2,013,000 a. What is the maximum amount of $179 expense ACW may deduct for 2022? b. What is the maximum total depreciation that ACW may deduct In 2022 on the assets it placed in service in 2022? Note: Round your Intermediate calculations and final answer to the nearest whole dollar amount. Answer is complete but not entirely correct. a. Maximum $179 expense for 2022 1,080,000 b. Maximum total deductible depreciation for 2022 $ 114,763

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_2

Step: 3

blur-text-image_3

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

Taxation Of Individuals And Business Entities 2023 Edition

Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham

14th Edition

1265790299, 978-1265790295

More Books

Students also viewed these Accounting questions