Required information (The following information applies to the questions displayed below.) points Skipped 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.) eBook Print References 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 a. What is the maximum amount of $179 expense TDW may deduct for 2019? Maximum $179 expense deductible Table 1 MACRS Half-Year Convention Year 1 Year 2 Year 3 | 20-Year 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 Year 4 1 5.76 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 6.931 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 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 | 4.461 1 4.462 4.461 4.462 14.461 2.231 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 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 3 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 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 1 11.97 Year 5 1 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 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 Year 1 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 | Year 3 Year 4 Year 5 Year 6 Year 7 18.00 16.76 1137 11.97 11.37 18 .871 4.26 8 .87 8 .87 | Year. 3.5+ TABLE 2c MACRS Mid Quarter Convention: Depreciation Rate for Recovery Period 5-Year 7-Year Yearl 15.00% 10.71% Year 2 34.002551 Year 3 20.40 18.22 Year 4 12.24 1 3.02 Year 5 11 30 9 .30 Year 6 7.06 8.85 Year 7 8 .86 1 Year 8 5 .53 TABLE 20 MACRS-Mid Quarter Convention: Depreciation Rate for Recovery Period 5-Year 2-Year Year 1 5 .00% 3.57% Year 2 3 8.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 1 0.94 10.04 Year 6 9.58 8.73 7 Year 8 .73 Year 8 1 76 caro 7.64 T LITTTTTTTT service during the fourth quarter TABLE 3 Residential Rental Property Mid Month Convention Straight Line 27.5 Years Month 8 Year 1 Month 1 3.485% 3.636 3.637 Month 2 3.182% 3.636 Month 3 2.879% 3.636 1 3649 Month Property Placed in Service Month 4 Month 5 Month 6 Month 7 2576% 2.273% 1970% 1.667% 3.636 3.636 3.636 3.636 36373637 3.637 3616 Month 9 Month 10 Month 11 Month 12 1.061% 0.758% 0.4559 3.636 3.636 3.636 3.636 3636 3.636 3.636 3.636 Year 2.9 Year 10 3.637 3637 3636 Year 11 3.636 3636 3636 3636 3636 3636 3637 3.637 3637 31637 3637 Year 12 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3636 3636 3.636 3.636 Year 13 3.636 3636 3636 3636 3636 3637 3637 3637 3637 3637 3.637 3636 3.637 Year 14 3637 3637 3637 3637 3.636 3616 3.636 3636 3.637 3636 3.636 3637 3.636 3.637 Year 15 3.636 3.636 3.636 3.636 3.636 1637 3.617 1617 3632 Year 16 3637 3637 3637 3637 3637 3.637 3.616 3636 3.636 3.636 3.636 3.636 Year 17 3.636 3616 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3637 Vear IS 3.637 3.637 3637 3637 3637 3.637 3.636 3636 3.636 3.636 3636 Year 19 3636 3.636 3.636 3.636 3.636 3.636 3.637 3637 1.637 3.637 3637 Year 203 637 3.637 3.637 3637 3636 3636 3.636 3.636 3637 16363636 Year 21 3.636 3636 3.627 3637 3.637 3.637 3637 3637 1617 1637 3636 1616 1636 3616 1636 Year 22 3.637 Year 213636 Year 24 3637 3.636 3.636 3.6373.637 3.6363.636 3.6373.637 3.637 3637 3637 3637 3.636 3.637 3.636 3.637 3.636 3.637 3.637 3.636 3.637 3.636 3.636 3.636 1616 1636 Year 25 3.636 3636 3.636 3.636 3.636 3.637 3.637 3637 3.637 3637 3.636 3.637 Year 26 3.637 3637 3.637 3631 3616 3.636 3.636 99 E 3616 3616 3616 3636 3636 3637 3637 3637 Year 27 Year 28 Year 29 36363636 2.273 2526 1.97 2879 3.182 3.485 3.636 3.636 3636 3.636 3.636 1 364 0.152 0455 0758 1061 Month 1 30014 Month 2 2 779% Month 3 251396 175 Month Property Placed in Service Month 5 Month Month 7 1981 0554 175 175 125 Month 4 22499 176 Yearl Month 3 1190 125 Month 0926% 125 Month 11 1 91 Month 12 0137 Month 10 06615 3175 3.175 Year 2.7 3175 3175 3 175 3175 3174 3175 3175 3.175 1175 3174 3175 3125 3174 3.174 3.174 1175 Year 9 Year 10 317 3174 3175 3175 3174 1174 3175 3174 11 3.175 3175 3174 Year 11 3174 3175 3174 3174 3175 1116 3175 3175 3174 Year 12 3175 3 174 3.175 3174 3.175 315 3 174 3175 3.175 3174 3175 3.174 3.175 3.174 3175 Year 13 Year 14 3.175 3174 1175 3 174 3175 3175 3174 Year 15 1125 1174 1175 3114 3175 3175 3174 3.175 175 3174 3174 3175 3175 3175 3.174 3174 175 3 174 3 174 1175 3175 3174 3174 1175 1174 3175 3175 3174 3124 1174 3124 1175 3.175 1115 3 174 1175 3.174 115 174 1175 12 1174 3174 3175 3175 3174 3175 1174 3170 3175 3.174 3175 3175 1174 1125 1174 3 125 3.175 115 3174 3175 3.174 1175 1175 3175 1170 3175 3124 1114 3175 314 317 3175 1124 3174 3175 3175 1114 3114 3.175 174 1125 3174 3175 1114 1175 115 135 175 1984 29 3175 0661 0132 0926 1190 Required information [The following information applies to the questions displayed below.) points Skipped 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.) eBook Print References Placed in Asset Machinery Computer equipment Furniture Total Service September 12 February 10 April 2 Basis $2,270,000 263,000 880,000 $3,413,000 a. What is the maximum amount of $179 expense TDW may deduct for 2019? Maximum $179 expense deductible
