TABLE 1 MACRS Half Year Convention Depreciation Rate for Recovery Period Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 33.33% 44.45 14.81 7.41 50% 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 3150% 7.219 6.677 2 3 4 5 6 7 8 20.00% 32.00 19.20 11.52 11.52 5.76 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 10.00% 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 10 12 13 16 18 19 20 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 7-Year 35.00% 26.00 15.60 11.01 11.01 1.38 21.43 15.31 10.93 8.75 8.74 8.75 1.09 TABLE 2b MACRS Mid-Quarter Convention: For property Depreciation Rate for Recovery Period 5-Year 7-Year 25.00% 17.85% 23.47 16.76 11.97 8.87 8.87 8.87 18.00 11.37 1.37 TABLE 2c MACRS Mid-Quarter Convention: For property Depreciation Rate for Recovery Period 10.71% 25.51 18.22 13.02 9.30 8.85 8.86 5.53 34.00 20.40 12.24 1 1.0 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Periad 7-Year 357% 38.00 27.55 19.68 14.06 10.04 8.73 8.73 7.64 13.68 10.94 9.58 TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line-39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service Year 2 4 1.819% 2.564 0.749 6 9 10 12 2.461% 2.564 0.107 2.247% 2.564 0.321 2.033% 2.564 0.535 1.605% 2.564 0.963 1.391% 2.564 1.177% 2.564 1.391 0.963% 2.564 1.605 0.749% 2.564 1.819 0.535% 2.564 2.033 0.321% 2.564 2.247 0.1 07% 2.564 2.461 2-39 2 40 Assume that ACW Corporation has 2018 taxable income of $1,000,000 for purposes of computing the 5179 expense. The company acquired the following assets during 2018 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.) Assume that the qualified improvement property has satisfied the conditions mentioned under Section 179(f) (2) Placed in Service Asset Basis Machinery Computer equipment Delivery truck Qualified improvement property Total September 12 470,000 70,000 93,000 1,380.000 $2,013,000 February 10 August 21 April 2 a. What is the maximum amount of 3179 expense ACW may deduct for 2018? b. What is the maximum total depreciation that ACW may deduct in 2018 on the assets it placed in service in 2018? (Round your intermediate computations to the nearest whole dollar amount.) a. $179 expense for 2018 Total deductible depreciation for 2018