Question
[The following information applies to the questions displayed below.] Assume that TDW Corporation (calendar-year-end) has 2020 taxable income of $698,000 for purposes of computing the
[The following information applies to the questions displayed below.]
Assume that TDW Corporation (calendar-year-end) has 2020 taxable income of $698,000 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 | $ | 2,276,000 |
Computer equipment | February 10 | 270,800 | |
Furniture | April 2 | 890,200 | |
Total | $ | 3,437,000 | |
|
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? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
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