Question

Required information Problem 10-56 (LO 10-2, LO 10-3) [The following information applies to the questions displayed below.) 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.) Asset Machinery Computer equipment Office building Total Placed in Service September 12 February 10 April 2 Basis $1,470,000 455,000 570,000 $ 2,495,000 Problem 10-56 Part b b. 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.)

Answer 1

Ans:

Assets	Useful life	Original basis	§179 expenses	Remaining basis	Rate	Depreciation
Machinery	7	1,470,000	$1,000,000	$470,000	14.29%	67,163
Computer equipment	5	455,000	-	$455,000	20%	91,000
Office building	39	570,000	-	$570,000	1.819%	10,773
		2,495,000				168,936

Therefore maximum depreciation including §179 expenses is $1,000,000+$168,936

= $1,168,936