Question
Assume that TDW Corporation (calendar year-end) has 2021 taxable income of $700,000 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 $700,000 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 | Placed in Service | Basis |
---|---|---|
Machinery | September 12 | $ 2,276,250 |
Computer equipment | February 10 | 271,125 |
Furniture | April 2 | 890,625 |
Total | $ 3,438,000 |
a. What is the maximum amount of 179 expense TDW may deduct for 2021?
b. What is the maximum total depreciation, including 179 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.)
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