Assume that TDW Corporation (calendar year end) has 2014taxable income of $650,000 before the §179 expense, acquired the following assets during 2014:
Asset Placed in Service Basis
Machinery ......... October 12 ......... $1,270,000
Computer Equipment ........ February 10 ......... 263,000
Furniture ...................... April 2 .................. 880,000
Total ....................................................... $2,413,000
a) What is the maximum amount of §179 expense TDW may deduct for 2014 (assume the 2013 §179 limits are extended to 2014)?
b) What is the maximum total depreciation expense, including §179 expense, that TDW may deduct in 2014on the assets it placed in service in 2014assuming no bonus depreciation(assume the 2013 §179 limits are extended to 2014)?