Question

! Required information [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.) Placed in Service Basis Asset Machinery Computer equipment office building September 12 $1,550,000 February 10 April 2 365,000 480,000 $2,395,000 Total a. What is the maximum amount of S179 expense AMP may deduct for 2019? 1,020,000 Maximum §179 expense deductible

Answer 1

Ans: Qualified property for section 179 expense includes Machinery and computer equipment and Office building does not qualify for Section 179 expense.

Particulars	Amount($)
A). Qualified property placed in 2019 i.e. machinery and equipment	$1.,550,000+$365,000=$1,915,000
B). Limit for section 179 phase out for 2019	(2,550,000)
C). phase out maximum 179 expense	0
D). Maximum 179 before phase	$1,020,000
E). Phase out maximum 179 expense	0
F). Maximum 179 expense	$1,020,000

Therefore , maximum amount of section for the year 2019 is $1,020,000