nku.3 Assume that ACW Corporation has 2022 taxable income of $1,960,000 for purposes of computing the §179 expense. The companyacquired the following assets during 2022 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.)AssetMachineryComputer equipmentDelivery truck10-February21-AugustPlaced in Service12-SeptemberBasis$ 516,000116,000Qualified real property (MACRS, 15 year,2-April150% DB)Total139,0001,426,000$ 2,197,000a. 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?Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.a. Maximum §179 expense for 2022b. Maximum total deductible depreciation for 2022

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a. Maximum §179 expense for 2022 b. Maximum total deductible depreciation for 2022

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter17: Business Tax Credits And The Alternative Minimum Tax

Section: Chapter Questions

Problem 7CE

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Question

nku.3

Assume that ACW Corporation has 2022 taxable income of $1,960,000 for purposes of computing the §179 expense. The company
acquired the following assets during 2022 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.)
Asset
Machinery
Computer equipment
Delivery truck
10-February
21-August
Placed in Service
12-September
Basis
$ 516,000
116,000
Qualified real property (MACRS, 15 year,
2-April
150% DB)
Total
139,000
1,426,000
$ 2,197,000
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?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
a. Maximum §179 expense for 2022
b. Maximum total deductible depreciation for 2022

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