Assume that ACW Corporation has 2022 taxable income of $1,660,000 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 Placed in Service 12-September 10-February 21-August Machinery Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 2-April 150% DB) Total a. Maximum §179 expense for 2022 b. Maximum total deductible depreciation for 2022 Basis $ 486,000 86,000 109,000 1,396,000 $ 2,077,000 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.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Assume that ACW Corporation has 2022 taxable income of $1,660,000 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
Qualified real property (MACRS, 15 year,
150% DB)
Total
Placed in Service
12-September
10-February
21-August
2-April
a. Maximum §179 expense for 2022
b. Maximum total deductible depreciation for 2022
Basis
$ 486,000
86,000
109,000
1,396,000
$ 2,077,000
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.
Transcribed Image Text:Assume that ACW Corporation has 2022 taxable income of $1,660,000 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 Qualified real property (MACRS, 15 year, 150% DB) Total Placed in Service 12-September 10-February 21-August 2-April a. Maximum §179 expense for 2022 b. Maximum total deductible depreciation for 2022 Basis $ 486,000 86,000 109,000 1,396,000 $ 2,077,000 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.
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