Assume that TDW Corporation (calendar year end) has 2016taxable income of $650,000 before the 179 expense, acquired

Question:

Assume that TDW Corporation (calendar year end) has 2016taxable income of $650,000 before the §179 expense, acquired the following assets during 2016:

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 2016?

b. What is the maximum total depreciation expense, including §179 expense, that TDW may deduct in 2016on the assets it placed in service in 2015assuming no bonus depreciation?

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...