AMP Corporation (calendar year end) has 2014 taxable income of $900,000 before the §179 expense. During 2014, AMP acquired the following assets:
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
a) What is the maximum amount of §179 expense AMP may deduct for 2014 (assume the 2013 §179 limits are extended to 2014)?
b) What is the maximum total depreciation expense, including §179 expense, that AMP may deduct in 2014on the assets it placed in service in 2014assuming no bonus depreciation (assume the 2013 §179 limits are extended to 2014)?