AMP Corporation (calendar year-end) has 2022 taxable income of $1,900,000 for purposes of computing the §179 expense. During 2022, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)AssetPlaced in ServiceBasisMachinerySeptember 12$ 1,380,000Computer equipmentFebruary 10410,000Office buildingApril 2525,000Total $ 2,315,000 a. What is the maximum amount of §179 expense AMP may deduct for 2022?

To calculate the maximum amount of Section 179 expense that AMP Corporation may deduct for 2022, we need to consider the total cost of the qualifying property placed in service during the year. Section 179 expense is limited to a certain dollar amount, and this limit is subject to an annual phase-out threshold.For the tax year 2022, the maximum Section 179 expense deduction is $1,050,000, and the phase-out threshold is $2,620,000. If the total cost of qualifying property placed in service during the year exceeds the phase-out threshold, the Section 179 expense deduction is reduced by the excess amount.Let's calculate the total cost of the assets acquired by AMP CorporationMachinery : $13,80,000Computer equipment: $4,10,000Office building : $5,25,000Total Basis = $13,80,000+$4,10,000+$5,25,000 = $23,15,000Now, we compare the total basis to the phase-out threshold$23,15,000 <$26,20,000Since the total basis is below the phase-out threshold, AMP Corporation can take the full Section 179 expense deduction.Therefore, the maximum amount of Section 179 expense AMP may deduct for 2022 is $10,50,000

Answered: a. What is the maximum amount of §179…

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AMP Corporation (calendar year-end) has 2022 taxable income of $1,900,000 for purposes of computing the §179 expense. During 2022, AMP acquired the following assets: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)

Asset	Placed in Service	Basis
Machinery	September 12	$ 1,380,000
Computer equipment	February 10	410,000
Office building	April 2	525,000
Total		$ 2,315,000

a. What is the maximum amount of §179 expense AMP may deduct for 2022?

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