Assume that ACW Corporation has 2023 taxable income of $1,600,000 for purposes of computing the $179 expense. The companyacquired the following assets during 2023 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.)AssetMachineryComputer equipmentPlaced in Service12-SeptemberBasis$ 480,00010-February80,000Delivery truck21-AugustQualified real property (MACRS, 15 year,02-April150% DB)Total103,0001,390,000$ 2,053,000a. 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.a. Maximum §179 expense for 2023$1,160,000b. Maximum total deductible depreciation for 2023$1,269,376

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Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

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Assume that TDW Corporation (calendar year-end) has 2021 taxable income of $696,000 for purposes of computing the §179 expense. The company acquired the following assets during 2021: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Placed in Service Basis Machinery September 12 $ 2,275,750 Computer equipment February 10 270,475 Furniture April 2 889,775 Total $ 3,436,000 What is the maximum amount of §179 expense TDW may deduct for 2021? (713270 is my prev answer and its wrong)
Assume that TDW Corporation (calendar-year-end) has 2020 taxable income of $692,000 for purposes of computing the §179 expense. The company acquired the following assets during 2020: (Use MACRS 2020 Table 1, Table 2, Table 3, Table 4 and Table 5.) Placed in Asset Service Basis Machinery September 12 $ 2,275,250 Computer equipment February 10 269,825 Furniture April 2 888,925 Total $ 3,434,000 What is the maximum amount of §179 expense TDW may deduct for 2020?
Assume that Timberline Corporation has 2022 taxable income of $246,000 for purposes of computing the §179 expense. It acquired the following assets in 2022: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Purchase Date Basis Furniture (7-year) December 1 $ 432,000 Computer equipment (5-year) February 28 96,000 Copier (5-year) July 15 36,000 Machinery (7-year) May 22 486,000 Total $ 1,050,000 What would Timberline's maximum depreciation deduction be for 2022 if the machinery cost $3,560,000 instead of $486,000 and assuming no bonus depreciation?
Assume that Sivart Corporation has 2022 taxable income of $1,750,000 for purposes of computing the §179 expense and acquired several assets during the year. Assume the delivery truck does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Placed in Service Basis Machinery June 12 $ 1,440,000 Computer equipment February 10 70,000 Delivery Truck—used August 21 93,000 Furniture April 2 310,000 Total $ 1,913,000 a. What is the maximum amount of §179 expense Sivart may deduct for 2022?
Assume that TDW Corporation ( calendar year-end) has 2022 taxable income of 654,000 for purposes of computing the expense. The company acquired the following assets during 2022MACRS and Computer equipownt In September 12 February 10 2 2,270,400 263,650 3,415,000 a What is the maximum amount of 179 expense may deduct for 20227
Assume that Sivart Corporation has 2023 taxable income of $1,750,000 for purposes of computing the §179 expense and acquired several assets during the year. Assume the delivery truck does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Asset Placed in Service Basis Machinery June 12 $ 1,440,000 Computer equipment February 10 70,000 Delivery Truck—used August 21 93,000 Furniture April 2 310,000 Total $ 1,913,000 b. What is the maximum total depreciation (§179, bonus, MACRS) that Sivart may deduct in 2023 on the assets it placed in service in 2023?
1 Assume that ACW Corporation has 2021 taxable income of $1,940,000 for purposes of computing the §179 expense. The company acquired the following assets during 2021 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.) Asset Placed in Service Basis Machinery 12-Sep $ 514,000 Computer equipment 10-Feb 114,000 Delivery truck 21-Aug 137,000 Qualified improvement property 02-Apr 1,424,000 Total $ 2,189,000 What is the maximum amount of §179 expense ACW may deduct for 2021? What is the maximum total depreciation that ACW may deduct in 2021 on the assets it placed in service in 2021? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Chaz Corporation has taxable income in 2021 of $315,000 for purposes of computing the §179 expense and acquired the following assets during the year: Asset Placed in Service Basis Office furniture September 12 $ 810,000 Computer equipment February 10 960,000 Delivery truck August 21 98,000 Qualified improvement property September 30 1,529,000 Total $ 3,397,000 What is the maximum total depreciation deduction that Chaz may deduct in 2021? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Company H started its operations in 2021 and made the following asset purchases: asset purchase date COST car 10/31/2021 $ 24,000 landscaping 8/25/2021 $ 2,200 office furniture 2/1/2021 $ 2,900 residential building 5/19/2021 $ 245,000 required: Determine the MACRS depreciation deductions for 2021 *and* 2022 for each of these assets.
In 2020, LRRR Corp., a calendar year corporation, acquired and placed in service the assets listed below. Asset Placed in Service Cost Recovery Period Computer 8/21/2020 1,050,000 5 years Machine 10/12/2020 1,000,000 7 years Warehouse 12/2/2020 2,000,000 39 years Assume (1) no bonus depreciation, (2) no Section 179 expense for question. 1. What convention is used to depreciate each asset and why? 2. What is the total depreciation expense LRRR Corp. may deduct in 2020? 3. What is LRRR Corps's deprecation expense in 2021? 4. Assume LRRR Corp sold all assets on May 23, 2022. What is LRRR Corps's depreciation expense in 2022? 5. Explain (in words, not calculations) what would be different is the Machine was placed in service on April 12, 2020. 6. If bonus depreciation is taken on all eligible assets, what is the total depreciation for 2020?
AMP Corporation (calendar year-end) has 2021 taxable income of $1,900,000 for purposes of computing the §179 expense. During 2021, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Asset Placed in Service Basis Machinery September 12 $ 1,530,000 Computer equipment February 10 485,000 Office building April 2 600,000 Total $ 2,615,000 b. What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2021 on the assets it placed in service in 2021, assuming no bonus depreciation? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
AMP Corporation (calendar-year-end) has 2023 taxable income of $1,900,000 for purposes of computing the §179 expense. During 2023, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Asset Placed in Service Basis Machinery September 12 $ 1,550,000 Computer equipment February 10 365,000 Office building April 2 480,000 Total $ 2,395,000 b. What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2023 on the assets it placed in service in 2023, assuming no bonus depreciation?

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