Assume that ACW Corporation has 2016 taxable income of $1,000,000 before the ?179 expense and 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 2016 on the assets it placed in service in 2016?

Transcribed Image Text:

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

Answer rating: 100% (QA)

Section 179 expenses It is a special rule to recover the cost of tangible personal property Apart from depreciation expenses Section 179 allows to ded... View the full answer