ACC307 - Chapter 10 Homework 4.docx - Required information[The following information applies to the questions displayed below AMP

ACC307 - Chapter 10 Homework 4.docx - Required...

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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 Asset Service Basis Machinery September 12 $ 1,410,0 00 Computer equipment February 10 425,000 Office building April 2 540,000 Total $ 2,375,0 00 a. What is the maximum amount of §179 expense AMP may deduct for 2019? Explanation a. The maximum §179 expense is $1,020,000. Description Amount Explanation (1 ) Property placed in service in 2019 $ 1,835,00 0 Total §179 qualified property (2 ) Threshold for §179 phase-out (2,550,0 00) 2019 amount [§179(b)(2)] (3 ) Phase-out of maximum §179 expense $ 0 (1) – (2) (permanently disallo
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