Good day,
I need help with the below problem. Please answer A and B. No need to put in any particular area; please just provide both answers.
Assume that ACW Corporation has 2014 taxable income of $1,000,000 before the §179 expense and acquired the following assets during 2014 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
| Asset |
Placed in Service |
Basis |
| Machinery |
September 12 |
$ |
470,000 |
| Computer equipment |
February 10 |
|
70,000 |
| Delivery truck |
August 21 |
|
93,000 |
| Qualified leasehold improvements |
April 2 |
|
380,000 |
| |
|
| Total |
|
$ |
1,013,000 |
| |
|
a. What is the maximum amount of §179 expense ACW may deduct for 2014?
b. What is the maximum total depreciation expense that ACW may deduct in 2014 on the assets it placed in service in 2014? (Round your answer to the nearest whole dollar amount.)