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Posted on Jul 20, 2024

Assume that TDW Corporation (calendar year-end) has 2021 taxable income of $664,000 for purposes of computing the $179 expense. The company acquired the following assets

Assume that TDW Corporation (calendar year-end) has 2021 taxable income of $664,000 for purposes of computing the $179 expense. The company acquired the following assets during 2021 (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5) Placed in Asset Service Basis Machinery September 12 $ 2,271,750 Computer equipment February 10 265,275 Furniture April 2 882,975 Total $ 3,420,000 a. What is the maximum amount of $179 expense TDW may deduct for 2021? Maximum $179 expense deductible TABLE S No residential Real Property Mid Mouth Convention Straight Line 19 Years for assets placed in service en or after May 13, 1993) Mouth Property Maced in Service Mesthi Month 2 Month Month 4 Months Month 6 Most 7 Meath Month Year1 21619 2247 2011 1.1994 1 605 1 1914 11 0961 074944 Year 2-39 2.566 2564 2561 2.564 2564 2564 3564 2164 Year 40 0.107 0.321 0 535 079 0.963 117 1.391 160 1819 Mouth 10 51546 2564 Month 11 0.3314 2560 2247 Meath 12 OON 2.56 2461 2013 Meath 03979 3175 3115 3.124 Meath 12 01324 1175 1175 1110 3175 3174 TABLE 4 Nonresidential Real Property Mid Mouth Care Straight Line 313 Years (forsets placed invice before May 13, 1991) Meath Property Placed in Service Month 1 Month 2 Month Meath 4 Months Month 6 Most Maari Month Year1 30029 25135 2 249% 19849 1730% 14559 1901 0926 Year 27 3.175 3.175 3.175 1175 3175 3175 3.175 3.175 1195 Years 3.175 1174 3.175 3116 3175 3170 3175 3175 175 Year 3.174 3.15 3174 3175 3.174 315 3.174 3.575 1.174 Year 10 3.15 3174 3.175 3.174 3.173 3.174 1175 1114 3175 Year 11 3.174 3.175 3174 3115 174 3175 3.12 3174 Year 12 3.175 3 174 3.175 1114 3175 1174 1125 3.174 115 Year 13 3.174 3.175 1174 3.175 3.174 3135 JIM 3173 3:11 Year 14 3.175 3.174 3.175 3.174 3175 3114 3175 3114 111 Year 15 3124 1175 1174 3175 3144 1175 3.174 1114 Year 16 3175 3114 3.175 1175 3114 3135 3174 5175 Year 17 3.114 3175 3114 3.1995 311 1115 311 1 Year 15 3175 317 3114 3170 1114 3179 Year 19 3174 175 3174 3174 119 2194 Year 10 3175 3.11 1114 3114 11 11 3.175 Vear 21 1114 3.175 3116 1115 3114 3114 Year 22 3175 3175 3 174 111 3.14 3175 3174 3174 3114 Vear 23 3175 3174 3115 3174 1115 3174 3114 Year 24 31 3118 3135 3113 3175 3175 3114 3:17 3174 Year 25 11 3.175 31 319 Month 10 0.6615 3.175 3:175 3.173 1174 3.75 1114 3175 1114 1135 3114 3195 111 113 3114 311 311 3174 111 3124 3125 3116 1173 SIN 3.115 1114 31 NIE CLIE 11 11 111 3114 SERT 3194 1 1115 Site FILE STE TIE Ft 3114 3.17 CLIE 17 PM 75% Cloudy A CO LAZA O To be to search 92/2011 25 Cloudy 40A 23 600 1990 190 013 ST PLE OLI CE WELT AE 21 JI HT SLI HE 1114 1115 11 1175 1174 960 TEC SAFE 1 SEIT PIE SLIE SLIE 311 NUE SEE PIE TIE SLIK TO SUE VIE SLIE MIC SLIE TE SU LIE CLIE RE SLTE Year33 Year 32 Years Year 10 Year 29 Year 28 Year 27 Year 26 SA NIE VEC SATE PE SCE 3.175 3.175 3.174 3.175 3174 3.175 SEE NIE TE SLIE VIE S21E 3.175 3.174 3.175 3174 SLIT DIE SZIE 3.175 3:174 WIE LE SLIC 3.174 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line 27.5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Year 1 3.485% 3.182% 2.879% 2.576% 2273% 1970% 16679 Year 2.9 3.636 3.636 3.636 3.636 3636 3.636 3.636 Year 10 3.637 3.637 3.637 3.637 3637 3.637 3.636 Year 11 3.636 3.636 3.636 3.636 3636 3.636 3637 Year 12 3.637 3.637 3.637 3 637 3637 3637 3.636 Year 13 3.636 3.636 3636 3636 3636 3636 3.637 Year 14 3 637 3637 3.637 3.637 3.637 3.637 3636 Year 15 3.636 3.636 3.636 3.636 3636 3.636 3 637 Year 16 3.637 3637 3.637 3.637 3.632 3.637 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3636 3.632 3.637 Year 18 3637 3637 3.637 3637 3.636 3637 3.636 Year 19 3.636 3.636 3.636 3.636 1637 3.636 3637 Year 20 3.637 3.637 3.637 3.637 3636 3.637 3636 Year 21 3.636 3.636 3637 3636 3.636 3.636 3637 3.637 3.637 3637 Year 22 3.637 3.637 3.636 Year 23 3636 3.636 3637 3636 3636 3.636 1616 3637 3.637 3.637 3637 3.637 3637 Year 24 3636 3.636 3.636 3.636 Year 25 3.636 3.636 3636 3.637 3637 3637 3.637 3.637 Year 26 1617 3636 3.636 3636 3636 3.636 3636 Year 27 Month 8 1361% 3.636 3.636 3.637 3636 3.637 3.636 3.637 3.636 3637 3.636 3632 3636 Month 9 1 061% 3.636 3.636 3.637 3.636 3.637 3.636 3637 3636 3637 3.636 1637 3.636 3637 3.636 3637 3636 #657 3636 363 Month 10 Month II Month 12 0.758% 0.4559 0.1529 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3636 3.636 3.636 1 637 3.637 3.637 3.636 3.636 3636 3.637 3.637 34636 1636 3636 3637 1637 1636 3636 3636 9632 3632 3637 3.636 1636 3637 3617 1636 3836 1636 3637 3617 3,69 3.636 3.616 2637 3637 3636 3637 3.636 3637 3617 3637 75F Cloudy 3.637 3.637 3.636 3.636 3.637 3.636 1.97 3.636 3.637 3636 2273 Year 25 Year 26 Year 27 Year 28 Year 29 3.636 3.637 3.636 2.576 3.636 3.637 3.636 2879 3.636 3.637 3.636 3.182 3.63% 3.636 3.637 3.636 3637 3.636 3485 3.637 3646 3.637 3636 0.758 3.637 3.636 3.637 3.636 0.455 3.632 3.636 3,637 3.636 1061 3.636 1632 3.637 U 3636 3.616 1 364 3636 1667 0152 TIM TABLE 2a MACRS Mid Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year Yearl 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 8 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter 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 Years 3.34 TABLE 2c MACRS Mid-Quarter Convention: For pronar TABLE 2c MACRS Mid Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 8 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57% Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Years 7.64 Table I MACRS Half-Year Convention 20-Year 3.750% Year 1 Year 2 7.219 Year 3 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 14.81 19.20 17.49 14.40 8.55 7.41 11.52 12.49 11.52 7.70 11.52 8.93 9.22 6.93 5.76 8.92 7.37 6.23 8.93 6.55 5.90 6.677 Year 4 6.177 5.713 Year 5 Year 6 Year 7 5.285 4.888 Years 4.46 6.55 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 6.55 5.90 Year 11 3.28 5.91 Year 12 5.90 4.461 4.462 4.461 4.462 4.461 5.91 Year 13 Year 14 Year 15 5.90 5.91 4.462 Year 16 2.95 4.461 Year 17 Year 18 Year 19 4.462 4.461 4.462 4.461 2.231 Year 20 Year 21 Assume that TDW Corporation (calendar year-end) has 2021 taxable income of $664,000 for purposes of computing the $179 expense. The company acquired the following assets during 2021: (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5) Asset Machinery Computer equipment Furniture Total Placed in Service September 12 February 10 April 2 Basis $ 2,271,750 265,275 882,975 $ 3,420,000 b. What is the maximum total depreciation, including 5179 expense, that TDW may deduct in 2021 on the assets it placed in service in 2021, assuming no bonus depreciation? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Maximum total depreciation deduction (including $179 expense) S