Please explain in detail for future use Assume that ACW Corporation has 2023 taxable income of $2,000,000 for purposes of computing the 179 expense The company acquired the following assets during 2023 (assume no bonus depreciation) (Use MACRS Table 1, Table 2, and Table 5 ) Asset Placed in Service Basis Machinery 12 September $ 520,000 Computer equipment 10 February 120,000 Delivery truck 21 August 143,000 Qualified real property (MACRS, 15 year, 150 DB) 02 April 1,430,000 Total $ 2,213,000 What is the maximum amount of 179 expense ACW may deduct for 2023 What is the maximum total depreciation that ACW may deduct in 2023 on the assets it placed in service in 2023 Note Round your intermediate calculations and final answer to the nearest whole dollar amount Table 1 MACRS Half Year Convention Depreciation Rate for Recovery Period 3 Year 5 Year 7 Year 10 Year 15 Year 20 Year Year 1 33 33 20 00 14 29 10 00 5 00 3 750 Year 2 44 45 32 00 24 49 18 00 9 50 7 219 Year 3 14 81 19 20 17 49 14 40 8 55 6 677 Year 4 7 41 11 52 12 49 11 52 7 70 6 177 Year 5 11 52 8 93 9 22 6 93 5 713 Year 6 5 76 8 92 7 37 6 23 5 285 Year 7 8 93 6 55 5 90 4 888 Year 8 4 46 6 55 5 90 4 522 Year 9 6 56 5 91 4 462 Year 10 6 55 5 90 4 461 Year 11 3 28 5 91 4 462 Year 12 5 90 4 461 Year 13 5 91 4 462 Year 14 5 90 4 461 Year 15 5 91 4 462 Year 16 2 95 4 461 Year 17 4 462 Year 18 4 461 Year 19 4 462 Year 20 4 461 Year 21 2 231 TABLE 2a MACRS Mid Quarter Convention For property placed in service during the first quarter Depreciation Rate for Recovery Period 5 Year 7 Year Year 1 35 00 25 00 Year 2 26 00 21 43 Year 3 15 60 15 31 Year 4 11 01 10 93 Year 5 11 01 8 75 Year 6 1 38 8 74 Year 7 8 75 Year 8 1 09 TABLE 2b MACRS Mid Quarter Convention For property placed in service during the second quarter Depreciation Rate for Recovery Period 5 Year 7 Year Year 1 25 00 17 85 Year 2 30 00 23 47 Year 3 18 00 16 76 Year 4 11 37 11 97 Year 5 11 37 8 87 Year 6 4 26 8 87 Year 7 8 87 Year 8 3 34 TABLE 2c MACRS Mid Quarter Convention For property placed in service during the third quarter Depreciation Rate for Recovery Period 5 Year 7 Year Year 1 15 00 10 71 Year 2 34 00 25 51 Year 3 20 40 18 22 Year 4 12 24 13 02 Year 5 11 30 9 30 Year 6 7 06 8 85 Year 7 8 86 Year 8 5 53 TABLE 2d MACRS Mid Quarter Convention For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5 Year 7 Year Year 1 5 00 3 57 Year 2 38 00 27 55 Year 3 22 80 19 68 Year 4 13 68 14 06 Year 5 10 94 10 04 Year 6 9 58 8 73 Year 7 8 73 Year 8 7 64 TABLE 5 Nonresidential Real Property Mid Month Convention Straight Line39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 2 461 2 247 2 033 1 819 1 605 1 391 1 177 0 963 0 749 0 535 0 321 0 107 Year 239 2 564 2 564 2 564 2 564 2 564 2 564 2 564 2 564 2 564 2 564 2 564 2 564 Year 40 0 107 0 321 0 535 0 749 0 963 1 177 1 391 1 605 1 819 2 033 2 247 2 461

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Question: Please explain in detail for future use. Assume that ACW Corporation has 2023 taxable income of $2,000,000 for purposes of computing the 179 expense. The

Please explain in detail for future use.

Assume that ACW Corporation has 2023 taxable income of $2,000,000 for purposes of computing the 179 expense. The company acquired the following assets during 2023 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.) Asset Placed in Service Basis Machinery 12-September $ 520,000 Computer equipment 10-February 120,000 Delivery truck 21-August 143,000 Qualified real property (MACRS, 15 year, 150% DB) 02-April 1,430,000 Total $ 2,213,000 What is the maximum amount of 179 expense ACW may deduct for 2023? What is the maximum total depreciation that ACW may deduct in 2023 on the assets it placed in service in 2023? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.

Table 1 MACRS Half-Year Convention

Depreciation Rate for Recovery Period
	3-Year	5-Year	7-Year	10-Year	15-Year	20-Year
Year 1	33.33%	20.00%	14.29%	10.00%	5.00%	3.750%
Year 2	44.45	32.00	24.49	18.00	9.50	7.219
Year 3	14.81	19.20	17.49	14.40	8.55	6.677
Year 4	7.41	11.52	12.49	11.52	7.70	6.177
Year 5		11.52	8.93	9.22	6.93	5.713
Year 6		5.76	8.92	7.37	6.23	5.285
Year 7			8.93	6.55	5.90	4.888
Year 8			4.46	6.55	5.90	4.522
Year 9				6.56	5.91	4.462
Year 10				6.55	5.90	4.461
Year 11				3.28	5.91	4.462
Year 12					5.90	4.461
Year 13					5.91	4.462
Year 14					5.90	4.461
Year 15					5.91	4.462
Year 16					2.95	4.461
Year 17						4.462
Year 18						4.461
Year 19						4.462
Year 20						4.461
Year 21						2.231

TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter

Depreciation Rate for Recovery Period
	5-Year	7-Year
Year 1	35.00%	25.00%
Year 2	26.00	21.43
Year 3	15.60	15.31
Year 4	11.01	10.93
Year 5	11.01	8.75
Year 6	1.38	8.74
Year 7		8.75
Year 8		1.09

TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter

Depreciation Rate for Recovery Period
	5-Year	7-Year
Year 1	25.00%	17.85%
Year 2	30.00	23.47
Year 3	18.00	16.76
Year 4	11.37	11.97
Year 5	11.37	8.87
Year 6	4.26	8.87
Year 7		8.87
Year 8		3.34

TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter

Depreciation Rate for Recovery Period
	5-Year	7-Year
Year 1	15.00%	10.71%
Year 2	34.00	25.51
Year 3	20.40	18.22
Year 4	12.24	13.02
Year 5	11.30	9.30
Year 6	7.06	8.85
Year 7		8.86
Year 8		5.53

TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter

Depreciation Rate for Recovery Period
	5-Year	7-Year
Year 1	5.00%	3.57%
Year 2	38.00	27.55
Year 3	22.80	19.68
Year 4	13.68	14.06
Year 5	10.94	10.04
Year 6	9.58	8.73
Year 7		8.73
Year 8		7.64

TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line39 Years (for assets placed in service on or after May 13, 1993)

Month Property Placed in Service
	Month 1	Month 2	Month 3	Month 4	Month 5	Month 6	Month 7	Month 8	Month 9	Month 10	Month 11	Month 12
Year 1	2.461%	2.247%	2.033%	1.819%	1.605%	1.391%	1.177%	0.963%	0.749%	0.535%	0.321%	0.107%
Year 239	2.564	2.564	2.564	2.564	2.564	2.564	2.564	2.564	2.564	2.564	2.564	2.564
Year 40	0.107	0.321	0.535	0.749	0.963	1.177	1.391	1.605	1.819	2.033	2.247	2.461

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