Assume that ACW Corporation has 2020 taxable income of $1,500,000 for purposes of computing the 179 expense.
Question:
Assume that ACW Corporation has 2020 taxable income of $1,500,000 for purposes of computing the §179 expense. The company acquired the following assets during 2020 (assume no bonus depreciation):
Asset | Placed in Service | Basis | ||
Machinery | September 12 | $470,000 | ||
Computer equipment | February 10 | 70,000 | ||
Delivery truck | August 21 | 93,000 | ||
Qualified improvement property | April 2 | 1,380,000 | ||
Total | $2,013,000 | |||
a) What is the maximum amount of §179 expense ACW may deduct for 2020?
b) What is the maximum total depreciation deduction that ACW may deduct in 2020 on the assets it placed in service in 2020?
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a The maximum 179 expense is 1040000 Description Amount Explanation 1 Qualifying property placed in ...View the full answer
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Related Book For 
Taxation Of Individuals And Business Entities 2021
ISBN: 9781260247138
12th Edition
Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham
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