Assume that ACW Corporation has 2016 taxable income of $1,000,000 before the 179 expense acquired the following

Assume that ACW Corporation has 2016 taxable income of $1,000,000 before the §179 expense acquired the following assets during 2016 (assume no bonus depreciation):

a. What is the maximum amount of §179 expense ACW may deduct for 2016?
b. What is the maximum total depreciation expense that ACW may deduct in 2016on the assets it placed in service in 2016?

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Asset Placed in Service Basis Machinery Computer equipment Delivery truck Qualified leasehold improvements September 12 February 10 August 21 April 2 $470,000 70,000 93,000 380,000 $1,013,000 Total