Question

Required information [The following information applies to the questions displayed below) Assume that TDW Corporation (calendar-year-endj has 2018 taxable income of $662,000 for purposes of computing the $179 expense. The company acquired the following assets during 2018 (Use MACRS Table 1 Table 2 Table 3. Table 4 and Table 5) Placed in Septenber 12 $2,271,500 April 2 Machinery Computer equipment February 10 264,950 Furniture 882,550 3,419,000 Total b. What is the maximum total depreciation, including $179 expense that TDW may deduct in 2018 on the assets it placed in service in 2018 assuming no bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.)

Answer 1

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Ignore the order of commas in amount: Year 2018: Answers is highlighted in yellow: Answer: b 573129 Explanation: If year convention will be used: Quarter 3rd 1st 2nd Balance $21,90,500 2,64,950 S 8,82,550 Assets Amount 179 Ded Balance Bonus Dep Life 7| 5| Rate epreciation 14.29%) $ 3,13,022 20.00%) $52,990 14.29%) $126,116 Machiner (7 Yr Computer equipment (5 yr) 2,64,950 Furniture (7 Bonus De 179 Deduction Maximum total Depreciation Expense $22,71,500 81,000 $21,90,500 2,64,950 S 8,82,550 $8,82,550 ation 81,000 81,000 573129 Maximum 179 deduction will be $1M Particulars Property placed in service in 2018 Threshold for 5179 phase-out-2018 Phase-out of maximum $179 expense (1-2) Maximum 179 expense before phase-out Phase-out of maximum $179 expense Maximum Section 179 deduction for 2018 is Amount 419000 Total 179qualified property 2500000(2018 179 limit) 1) 2) 3) 4) 5) 6) 919000 1000000 (2018 179 limit) 919000 from above 81,000 1000000-91