AMP Corporation (calendar year end) has 2016taxable income of $900,000 before the 179 expense. During 2016, AMP

Question:

AMP Corporation (calendar year end) has 2016taxable income of $900,000 before the §179 expense. During 2016, 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 2016?

b. What is the maximum total depreciation expense, including §179 expense, that AMP may deduct in 2016on the assets it placed in service in 2016assuming no bonus depreciation?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...