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What am I doing wrong? Assume that ACW Corporation has 2021 taxable income of $1,840,000 for purposes of computing the $179 expense. The company acquired
What am I doing wrong?
Assume that ACW Corporation has 2021 taxable income of $1,840,000 for purposes of computing the $179 expense. The company acquired the following assets during 2021 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.) Asset Machinery Computer equipment Delivery truck Qualified improvement property Total Placed in Service 12-Sep 10-Feb 21-Aug 02-Apr Basis $ 504,000 104,000 127,000 1,414,000 $ 2,149,000 a. What is the maximum amount of $179 expense ACW may deduct for 2021? b. What is the maximum total depreciation that ACW may deduct in 2021 on the assets it placed in service in 2021? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. a. Maximum $179 expense for 2021 $ 1,050,000 b. Maximum total deductible depreciation for 2021 $ 1,174,843 56 Rate 57 58 Assets Amount 179 Ded. Machinery $504,000.00 computer equipr $104,000.00 delivery truck $127,000.00 qualified improve $1,414,000.00 $1,050,000.00 179 Deduction Maximum total Depreciation Expense Balance $504,000.00 $104,000.00 $127,000.00 $364,000.00 14.29% 20.00% 20.00% 59 60 Depreciation $72,021.60 $20,800.00 $25,400.00 $6,621.16 $124,842.76 $1,050,000.00 $1,174,842.76 1.82% 61 . 62 63Step by Step Solution
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