Reference no: EM132479737

Assume that TDW Corporation (calendar-year-end) has 2019 taxable income of $650,000 for purposes of computing the §179 expense. The company acquired the following assets during 2019: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)

Placed in Asset Service Basis Machinery

September 12 $ 2,270,000

Computer equipment February 10 263,000

Furniture April 2 880,000 Total $ 3,413,000

Question 1: What is the maximum total depreciation, including §179 expense, that TDW may deduct in 2019 on the assets it placed in service in 2019, assuming no bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.)

AMP Corporation (calendar-year-end) has 2019 taxable income of $1,900,000 for purposes of computing the §179 expense. During 2019, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)

Placed in Asset Service Basis Machinery

September 12 $ 1,550,000

Computer equipment February 10 365,000

Office building April 2 480,000 Total $ 2,395,000

Question 2: What is the maximum total depreciation, including §179 expense, that AMP may deduct in 2019 on the assets it placed in service in 2019, assuming no bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.)