1. On November 16, 2018, Ace Company purchased manufacturing equipment (7-year property) for 2,400,000 and computers and duplication machines (5-year property) for 250,000. Ace elects not to take bonus depreciation on these assets but wants to take Section 179 expensing and MACRS depreciation instead. These assets are the only asset purchases that Ace makes during all of 2018. 
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3. Compute Ace’s Section 179 expense deduction and its MACRS depreciation deduction for these assets in 2018 assuming that any expensing is used first for the 7-year assets and that Ace’s taxable income for the year is 8,500,000.

Answer rating: 100% (QA)

Section 179 Expense Deduction Aces Section 179 expense deduction for 2018 is limited to 1000000 sinc... View the full answer