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Posted on Jul 17, 2024

Required information [The following information applies to the questions displayed below.) Assume that TDW Corporation (calendar-year-end) has 2019 taxable income of $650,000 for purposes of

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Required information [The following information applies to the questions displayed below.) Assume that TDW Corporation (calendar-year-end) has 2019 taxable income of $650,000 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.) Asset Machinery Computer equipment Furniture Total Placed in Service September 12 February 10 April 2 Basis $ 2,270,000 263,000 880,000 $ 3,413,000 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.) Table 1 MACRS Half-Year Convention 3-Year 33.33% 4 4.45 14.81 7.41 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 20-Year 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 Depreciation Rate for Recovery Period 5-Year 7-Year 10-Year 15-Year 20.00% 14.29% 10.00% 5.00% 32.00 24.49 18.00 9.50 19.20 17.49 14.40 8.55 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 4.46 6.55 5.90 6.56 5.91 6.55 5.90 3.28 5.91 5.90 5.91 5.90 5.91 2.95 4.522 4.462 4.461 Year 11 4.462 4.461 4.462 4.461 4.462 4.461 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 4.462 4.461 4.462 4.461 2.231 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter 15.31 Depreciation Rate for Recovery Period 1 5-Year 7-Year Year 1 | 35.00% 25.00% Year 2 26.00 21.43 Year 3 | 15.60 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 Year 3 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Yearl 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 8.85 Year 7 8.86 Year S 5.53 7.06 TABLE 2 MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Yearl 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 Year 8 7.64 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years Year 1 Year 2-9 Year 10 Month 1 3.485% 3.636 3.637 Month 2 3.182% 3.636 3.637 | | | | | | Year 11 3.636 Year 12 3.637 Year 13 3.636 Year 14 3.637 Year 15 3.636 Year 163.637 Year 17 | 3.636 Year 18 3.637 Year 19 3.636 Year 20 3.637 Year 21 3.636 Year 22 3.637 | Year 23 3.636 Year 24 3.637 Year 25 3.636 Year 26 3.637 Year 27 3.636 Year 28 1.97 Year 29 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 2.273 Month Property Placed in Service Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 2.879% 2.576% 2.273% 1.970% 1.667% 1.364% 1.061% 0.758% 0.455% 0.152% | 3.636 3.636 3.636 3.636 3.636 3.636 3.636 | 3.636 | 3.636 3.636 3.637 3.637 3.637 3 .637 3.636 3.636 3.636 | 3.636 | 3.636 3.636 3.636 3.636 3.636 3.636 | 3.637 3.637 3.637 | 3.637 1 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 3.636 3.636 3.636 3.637 3.637 3.637 3.637 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 3.636 3.636 3.636 | 3.637 | 3.637 3.637 | 3.637 | 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 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.6373.6373.6373.637 3.6363 .636 3.636 3.636 3.636 3.636 3.636 | 3.636 | 3.636 3 .636 3.637 3.637 3.637 3.637 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 3.636 3.636 3.636 3.637 3.637 3.637 | 3.637 3.637 3.637 3.6373.6373.6373.637 3.6363 .636 3.636 3.636 3.636 3.636 | 3.636 1 3.636 | 3.636 | 3.636 | 3.637 | 3.637 1 3.637 | 3.637 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 3.636 3.636 3.636 3.637 3.637 3.637 | 3.637 3.637 3.637 3.6373.6373.637 3.637 3.6363.6363.636 3.6363.6363.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 2.576 2.879 3.182 3.485 3.636 3.636 3.636 3.636 3.636 0.152 0.455 0.758 1.061 1.364 1.667 | | | 1 L L L L 3.175 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line31.5 Years (for assets placed in service before May 13, 1993) Month Property Placed in Service 1 Month 1 Month 2 Month 3 Month 4 Month 3 Month 6 Month 7 1 Month 3 Month 9 | Year 1 3.042% 2.778% 2.513% 2.249% 1.984% 1.720% 1.455% 1.190% 0.926% Year 2-7 | 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 Year 3 3.175 3.174 3.175 1 3 .174 3.175 3.174 3.175 L 3.175 3.175 Year 9 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 L 3.174 Year 10 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 11 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 12 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 13 3.174 3.175 3.174 3.175 3.174 | 3.175 3.174 3.175 3.174 Year 14 3.175 3.174 3.175 3.174 3.175 L 3.174 3.175 L 3.174 3.175 Year 15 3.174 | 3.175 3.174 3.175 3.174 3.174 3.175 3.174 Year 16 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 17 3.174 3.175 3.174 3.175 3.174 3.175 L 3.174 3.175 3.174 Year 18 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 19 3.174 3.175 3.174 3.175 L 3.174 3.175 3.174 3.175 3.174 Year 20 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 21 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 L 3.174 1 Year 22 3 .175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 23 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.115 3.174 Year 24 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1 3.175 Year 25 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 26 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 27 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 28 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 29 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 30 3 .175 3.174 3.175 L 3.174 3.175 L 3.174 3.175 L 3.174 3.175 Year 31 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 Year 32 1.720 L 1.984 2.249 2.513 2.778 3.042 3.175 L 3.174 L 3.175 Year 33 1 0.132 0.397 0.661 Month 10 0.661% 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 3.175 3.174 3.175 3.174 3.175 3.174 3.175 L Month 11 0.397% 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 3.174 3.175 3.174 3.175 1.190 Month 12 0.132% 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 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 1.455 1 L 3.174 L L L 3.175 3.175 3.174 3.175 3.174 0.926 L L L L TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line39 Years (for assets placed in service on or after May 13, 1993) Yearl Year 239 Year 40 Month 1 2.461% 2.564 0.107 Month 2 2.247% 2.564 0.321 Month 3 12.033% 2.564 0.535 Month 4 1.819% 2.564 0.749 Month Property Placed in Service Month 5 Month 6 | Month 7 | Month 3 1.605% 1.391% 1.177% 0.963% 2.564 2.564 2.564 2.564 0.963 1.177 L 1.391 1.605 Month 9 0.749% 2.564 1.819 Month 10 | Month 11 | Month 12 0.535% 0.321% 0.107% 2.564 2.564 2.564 2.033 2.247 2.461