Assume that ACW Corporation has 2022 taxable income of $1,500,000 for purposes of computing the 179 expense.

Question:

Assume that ACW Corporation has 2022 taxable income of $1,500,000 for purposes of computing the §179 expense. The company acquired the following assets during 2022 (assume no bonus depreciation):

a) What is the maximum amount of §179 expense ACW may deduct for 2022?
b) What is the maximum total depreciation that ACW may deduct in 2022 on the assets it placed in service in 2022?

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Taxation Of Individuals And Business Entities 2023 Edition

ISBN: 9781265790295

14th Edition

Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham

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Question Posted: Nov 15, 2022 01:43 AM

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Assume that ACW Corporation has 2022 taxable income of $1,500,000 for purposes of computing the 179 expense.

Question:

Asset Machinery Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total Placed in Service September 12 February 10 August 21 April 2 Basis $ 470,000 70,000 93,000 1,380,000 $2,013,000

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a The maximum 179 expense is 1080000 Description Amount Explanation 1 Qualifying property placed in ...View the full answer

Taxation Of Individuals And Business Entities 2023 Edition

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