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Assume that TDW Corporation (calendar-year-end) has 2020 taxable income of $656,000 for purposes of computing the 179 expense. The company acquired the following assets during

Assume that TDW Corporation (calendar-year-end) has 2020 taxable income of $656,000 for purposes of computing the 179 expense. The company acquired the following assets during 2020: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)

Placed in
Asset Service Basis
Machinery September 12 $ 2,270,750
Computer equipment February 10 263,975
Furniture April 2 881,275
Total $ 3,416,000

a. What is the maximum amount of 179 expense TDW may deduct for 2020?

b. What is the maximum total depreciation, including 179 expense, that TDW may deduct in 2020 on the assets it placed in service in 2020, assuming no bonus depreciation?

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