a. Maximum §179 expense for 2023 b. Maximum total deductible depreciation for 2023 $ CA $ EA 1,160,000 219,581 X

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume that ACW Corporation has 2023 taxable income of $1,620,000 for purposes of computing the §179 expense.
The company acquired the following assets during 2023 (assume no bonus depreciation): (Use MACRS Table 1, Table
2, and Table 5.)
Asset
Machinery
Computer equipment
Delivery truck
Qualified real property (MACRS, 15
year, 150% DB)
Total
Placed in Service
12-September
10-February
21-August
02-April
Basis
$ 482,000
82,000
105,000
1,392,000
$ 2,061,000
a. What is the maximum amount of §179 expense ACW may deduct for 2023?
b. What is the maximum total depreciation that ACW may deduct in 2023 on the assets it placed in service in 2023?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
X Answer is complete but not entirely correct.
$
$
a. Maximum §179 expense for 2023
b. Maximum total deductible depreciation for 2023
1,160,000
219,581 X
Transcribed Image Text:Assume that ACW Corporation has 2023 taxable income of $1,620,000 for purposes of computing the §179 expense. The company acquired the following assets during 2023 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.) Asset Machinery Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total Placed in Service 12-September 10-February 21-August 02-April Basis $ 482,000 82,000 105,000 1,392,000 $ 2,061,000 a. What is the maximum amount of §179 expense ACW may deduct for 2023? b. What is the maximum total depreciation that ACW may deduct in 2023 on the assets it placed in service in 2023? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. X Answer is complete but not entirely correct. $ $ a. Maximum §179 expense for 2023 b. Maximum total deductible depreciation for 2023 1,160,000 219,581 X
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