Assume AMP Corporation (calendar year end) has 2017 taxable income of $900,000 for purposes of computing the §179 expense. During 2017, AMP acquired the following assets:

a) What is the maximum amount of §179 expense AMP may deduct for 2017?
b) What is the maximum total depreciation expense, including §179 expense, that AMP may deduct in 2017 on the assets it placed in service in 2017 assuming no bonus depreciation?

Transcribed Image Text:

Asset Machinery Computer Equipment Office Building Total Placed in Service September 12 February 10 April 2 Basis $1,550,000 365,000 480,000 $2,395,000