Question
[The following information applies to the questions displayed below.] AMP Corporation (calendar year-end) has 2021 taxable income of $1,900,000 for purposes of computing the 179
[The following information applies to the questions displayed below.]
AMP Corporation (calendar year-end) has 2021 taxable income of $1,900,000 for purposes of computing the 179 expense. During 2021, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
Asset | Placed in Service | Basis |
---|---|---|
Machinery | September 12 | $ 1,550,000 |
Computer equipment | February 10 | 365,000 |
Office building | April 2 | 480,000 |
Total | $ 2,395,000 |
a. What is the maximum amount of 179 expense AMP may deduct for 2021?
b. What is the maximum total depreciation, including 179 expense, that AMP may deduct in 2021 on the assets it placed in service in 2021, assuming no bonus depreciation? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
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