Assume that ACW Corporation has 2014taxable income of $1,000,000 before the 179 expense, acquired the following assets

Question:

Assume that ACW has 2014taxable income of $1,000,000 before the §179 expense, acquired the following assets during 2014(assume no bonus depreciation but assume that the 2013 §179 limits are extended to 2014):
Asset ....................... Placed in Service ........ Basis
Machinery ...................... September 12 ................. $470,000
Computer equipment .............. February 10 ................... 70,000
Delivery truck ..................... August 21 ................. 93,000
Qualified leasehold improvements... April 2...................... 380,000
Total ............................................................... $1,013,000
a) What is the maximum amount of §179 expense ACW may deduct for 2014?
b) What is the maximum total depreciation expense that ACW may deduct in 2014on the assets it placed in service in 2014?
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...