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Assume that TDW Corporation (calendar-year-end) has 2019 taxable income of $686,000 for purposes of computing the 179 expense. The company acquired the following assets during

Assume that TDW Corporation (calendar-year-end) has 2019 taxable income of $686,000 for purposes of computing the 179 expense. The company acquired the following assets during 2019: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)

Placed in
Asset Service Basis
Machinery September 12 $ 2,274,500
Computer equipment February 10 268,850
Furniture April 2 887,650
Total $ 3,431,000

b. What is the maximum total depreciation, including 179 expense, that TDW may deduct in 2019 on the assets it placed in service in 2019, assuming no bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.)

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- X 5 E C\Users\12019\Desktop x + V 0 file:///C:/Users/12019/Desktop/ch10_table2.htm TABLE 2a MACRS Mid Quarter Convention: For properly placed service during the first quarter Depreciation Rate for Recovery Perind 5 Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.13 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 properly 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 11.97 Year 5 11.37 8.87 Year 6 | 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2 MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year Yearl 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Type here to search O e 1 o - O a 19 ENG 2017020 a a = c\Users\120194Desktop x + 0 file:///C:/Users/12019/Desktop/ch10_table1.htm E Table 1 MACRS Hall Year Convention 20-Year 3.790 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 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 9.90 14.81 19.20 1 17,49 14.10 8.$$ 741 11.52 12.49 11.52 11.52 6.03 Year 7 9.90 Year 8 Year 9 Year 10 Year 11 4.462 Year 12 IIIIII 4.461 Year 13 Year 14 Year 15 Year 16 Year 17 5.90 5.91 2.95 4462 4.481 4.462 Year 18 Year 19 Year 20 Year 21 2.231 Type here to search et e w 6 % - 0 . 19 EN ENG 2:29 PM 2/7/2020 a C\Users\12019\Desktop x + V 0 0 file:///C:/Users/12019/Desktop/ch10_table3.htm E TABLE 3 Residential Rental Property Mid-Month Convention Straight Line27.5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month Month 6 Month 7 3 .485% 3.182% 2.879% 2.576% 2.273% 1.970% 1.667% 3.6363.636 3.6363.6363.6363.636 Year 1 Year 2-9 Month 8 Month 9 Month 10 Month 11 Month 12 1.364% 1.061% 0.758% 0.455% 0.152% 3.6363.63636363.6363.636 3.636363636363.6363.636 3.636 Year 10 3.637 3.637 3.637 3.637 3.637 3.637 3.636 .636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 Year 11 Year 12 3.6363 3.637 .636 3.637 3.6363 3.637 3.637 3.637 3.636 3.6363.6363.636 Year 13 3.636 3.636 3.636 1 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.637 3.636 3.636 3.637 3.637 3.636 3.637 3.636 3.637 3.636 3.6363 3.637 3.636 .636 3.636 3.637 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.6.36 3.636 3.637 3.637 3.6363 .636 3.637 13.637 3.6363 .636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 13.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.636 3.636 3.637 3.657 3.637 3.637 3067 3.637 Year 20 3.637 3.637 3.037 3.636 3.636 | 3.636 3 636 3.636 3.636 Year 21 3.637 3.657 3.637 3.632 3.637 3.637 Year 22 3.636 3.637 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 23 3.636 3.637 3.837 3.637 3.637 Year 24 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.6373.637 3.636 3.636 3.182 3.485 3.637 3.637 3.6363.636 3,637 3.637 Year 25 3.636 3.636 3.636 3.636 3.637 3.6363 3.637 3.637 3.637 3.636 3.637 3.636 2.879 .6363 .636 3.636 3.63 3.636 Year 26 Year 27 Year 28 Year 29 3.636 3.637 3.6373.637 3.6363.636 3.636 1.97 2.273 2576 1 13.6363.6363.63636363.6363.636 0.152 0.455 0.758 1.051 1 .364 1.667 Type here to search o ste W 0 0 / A o T v ENG ENO 2:32 PM 2/7/2020 - o X a C\Users\12019\Desktop x + 0 0 file:///C:/Users/12019/Desktop/ch10_table4.htm E Month 2 Month 4 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 0.661% 0.397% Month 1 3.042% 3.175 3.75 Year 2-7 Month 3 2.513% 3.175 3.175 3.174 3.175 2.249% 3.175 3.174 3.175 Month Property Placed in Service Month 5 Month 6 Month 7 1.984% 1.720% 1.455% 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1.190% 3.175 3.175 3.175 0.926% 3.175 3.175 3.174 3.175 3.175 3.175 Year 8 3.175 3.174 3.175 3.175 3.174 Year 9 Year 10 Year 11 3.175 3.174 3.174 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 0.132% 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 Year 12 Year 13 Year 14 3.175 3.174 3.175 174 13.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 Year 15 3.174 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 2.778% 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 1.981 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 13.175 3.174 3.175 3.174 3.179 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 2.313 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 .113 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 16 3.175 Year 17 3.174 Year 18 3.175 Year 19 3.174 Year 20 13.175 Year 213 .174 Year 22 3.175 3.174 Year 24 3.175 Year 25 3.174 Year 26 3.175 Ycar 27 Ycar 28 3.175 Year 29 3.174 Year 30 3.175 Year 31 3.174 Year 32 1.720 3.175 Year 23 3 3 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.179 3.174 3.175 3.174 3.175 3.174 3.175 3.012 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.1 74 3.175 3.174 3.175 3.174 3.175 3.174 0.926 3.174 3.175 .174 3.174 3.175 3.174 3.175 .174 3.173 3.174 3.175 3.174 3.175 3.174 3.173 3.174 3.175 0.132 3 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.174 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 1.190 3.174 3.175 3.174 3.175 3.174 2.778 3.175 3.175 3.174 3.175 3.171 3.173 0.661 3.171 3.173 2.219 3.174 Year 33 0.397 Type here to search OE e C no 19 ENG 2330 a C\Users\12019\Desktop x + V 0 0 file:///C:/Users/12019/Desktop/ch10_table5.htm E TABLE 5 Nonresidential Real Property Mid Month Convention Straight Line-39 Years (for assets placed in service on or after May 13, 1993) Month 12 0.107% Year 1 Year 2-39 Year 40 Month 1 2.461% .564 0.107 Month 2 2.247% 2.564 0.321 Month 3 2.033% 2.564 0.533 Month Property Placed in Service Month 3 Month 6 Month 7 1.605% 1.391% 1.177% 2.564 2.564 2.564 .963 1.177 1 .391 Month 4 1.819% 2.564 0.749 Month 8 0.963% 2.564 1.605 Month 9 0.749% 2.564 1.819 Month 10 0.535% 2.564 2.033 Month 11 0.321% 2.564 2.247 2 2.564 2.461 0 Type here to search o ste W 0 0 / A o T v ENG ENG 2:33 PM 2/7/2020 - X 5 E C\Users\12019\Desktop x + V 0 file:///C:/Users/12019/Desktop/ch10_table2.htm TABLE 2a MACRS Mid Quarter Convention: For properly placed service during the first quarter Depreciation Rate for Recovery Perind 5 Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.13 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 properly 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 11.97 Year 5 11.37 8.87 Year 6 | 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2 MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year Yearl 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Type here to search O e 1 o - O a 19 ENG 2017020 a a = c\Users\120194Desktop x + 0 file:///C:/Users/12019/Desktop/ch10_table1.htm E Table 1 MACRS Hall Year Convention 20-Year 3.790 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 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 9.90 14.81 19.20 1 17,49 14.10 8.$$ 741 11.52 12.49 11.52 11.52 6.03 Year 7 9.90 Year 8 Year 9 Year 10 Year 11 4.462 Year 12 IIIIII 4.461 Year 13 Year 14 Year 15 Year 16 Year 17 5.90 5.91 2.95 4462 4.481 4.462 Year 18 Year 19 Year 20 Year 21 2.231 Type here to search et e w 6 % - 0 . 19 EN ENG 2:29 PM 2/7/2020 a C\Users\12019\Desktop x + V 0 0 file:///C:/Users/12019/Desktop/ch10_table3.htm E TABLE 3 Residential Rental Property Mid-Month Convention Straight Line27.5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month Month 6 Month 7 3 .485% 3.182% 2.879% 2.576% 2.273% 1.970% 1.667% 3.6363.636 3.6363.6363.6363.636 Year 1 Year 2-9 Month 8 Month 9 Month 10 Month 11 Month 12 1.364% 1.061% 0.758% 0.455% 0.152% 3.6363.63636363.6363.636 3.636363636363.6363.636 3.636 Year 10 3.637 3.637 3.637 3.637 3.637 3.637 3.636 .636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 Year 11 Year 12 3.6363 3.637 .636 3.637 3.6363 3.637 3.637 3.637 3.636 3.6363.6363.636 Year 13 3.636 3.636 3.636 1 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.637 3.636 3.636 3.637 3.637 3.636 3.637 3.636 3.637 3.636 3.6363 3.637 3.636 .636 3.636 3.637 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.6.36 3.636 3.637 3.637 3.6363 .636 3.637 13.637 3.6363 .636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 13.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.636 3.636 3.637 3.657 3.637 3.637 3067 3.637 Year 20 3.637 3.637 3.037 3.636 3.636 | 3.636 3 636 3.636 3.636 Year 21 3.637 3.657 3.637 3.632 3.637 3.637 Year 22 3.636 3.637 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 23 3.636 3.637 3.837 3.637 3.637 Year 24 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.6373.637 3.636 3.636 3.182 3.485 3.637 3.637 3.6363.636 3,637 3.637 Year 25 3.636 3.636 3.636 3.636 3.637 3.6363 3.637 3.637 3.637 3.636 3.637 3.636 2.879 .6363 .636 3.636 3.63 3.636 Year 26 Year 27 Year 28 Year 29 3.636 3.637 3.6373.637 3.6363.636 3.636 1.97 2.273 2576 1 13.6363.6363.63636363.6363.636 0.152 0.455 0.758 1.051 1 .364 1.667 Type here to search o ste W 0 0 / A o T v ENG ENO 2:32 PM 2/7/2020 - o X a C\Users\12019\Desktop x + 0 0 file:///C:/Users/12019/Desktop/ch10_table4.htm E Month 2 Month 4 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 0.661% 0.397% Month 1 3.042% 3.175 3.75 Year 2-7 Month 3 2.513% 3.175 3.175 3.174 3.175 2.249% 3.175 3.174 3.175 Month Property Placed in Service Month 5 Month 6 Month 7 1.984% 1.720% 1.455% 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1.190% 3.175 3.175 3.175 0.926% 3.175 3.175 3.174 3.175 3.175 3.175 Year 8 3.175 3.174 3.175 3.175 3.174 Year 9 Year 10 Year 11 3.175 3.174 3.174 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 0.132% 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 Year 12 Year 13 Year 14 3.175 3.174 3.175 174 13.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 Year 15 3.174 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 2.778% 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 1.981 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 13.175 3.174 3.175 3.174 3.179 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 2.313 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 .113 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 16 3.175 Year 17 3.174 Year 18 3.175 Year 19 3.174 Year 20 13.175 Year 213 .174 Year 22 3.175 3.174 Year 24 3.175 Year 25 3.174 Year 26 3.175 Ycar 27 Ycar 28 3.175 Year 29 3.174 Year 30 3.175 Year 31 3.174 Year 32 1.720 3.175 Year 23 3 3 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.179 3.174 3.175 3.174 3.175 3.174 3.175 3.012 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.1 74 3.175 3.174 3.175 3.174 3.175 3.174 0.926 3.174 3.175 .174 3.174 3.175 3.174 3.175 .174 3.173 3.174 3.175 3.174 3.175 3.174 3.173 3.174 3.175 0.132 3 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.174 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 1.190 3.174 3.175 3.174 3.175 3.174 2.778 3.175 3.175 3.174 3.175 3.171 3.173 0.661 3.171 3.173 2.219 3.174 Year 33 0.397 Type here to search OE e C no 19 ENG 2330 a C\Users\12019\Desktop x + V 0 0 file:///C:/Users/12019/Desktop/ch10_table5.htm E TABLE 5 Nonresidential Real Property Mid Month Convention Straight Line-39 Years (for assets placed in service on or after May 13, 1993) Month 12 0.107% Year 1 Year 2-39 Year 40 Month 1 2.461% .564 0.107 Month 2 2.247% 2.564 0.321 Month 3 2.033% 2.564 0.533 Month Property Placed in Service Month 3 Month 6 Month 7 1.605% 1.391% 1.177% 2.564 2.564 2.564 .963 1.177 1 .391 Month 4 1.819% 2.564 0.749 Month 8 0.963% 2.564 1.605 Month 9 0.749% 2.564 1.819 Month 10 0.535% 2.564 2.033 Month 11 0.321% 2.564 2.247 2 2.564 2.461 0 Type here to search o ste W 0 0 / A o T v ENG ENG 2:33 PM 2/7/2020

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