Assume that Sivart Corporation has 2016 taxable income of $750,000 before the 179 expense and acquired the

Question:

Assume that Sivart Corporation has 2016 taxable income of $750,000 before the §179 expense and acquired the following assets during 2016:

Asset_______________________________ Placed in Service__________Basis_

Machinery .......................................October 12..................$1,440,000

Computer Equipment........................February 10 ..................70,000

Delivery Truck - used.......................August 21 ....................93,000

Furniture ......................................April 2...........................310,000

Total ................................................................................$1,913,000

a. What is the maximum amount of §179 expense Sivart may deduct for 2016?

b. What is the maximum total depreciation expense (§179, bonus, MACRS) that Sivart may deduct in 2016on the assets it placed in service in 2016?

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...