Assume that Timberline Corporation has 2014taxable income of $240,000 before the §179 expense (assume the 2013 §179 limits are extended to 2014).
Asset Purchase Date Basis
Furniture (7-year) ................ December 1 ....... $350,000
Computer Equipment(-5 year)........ February 28 ...... 90,000
Copier (5-year) ................ July 15 .............. 30,000
Machinery (7-year) ................. May 22 ............. 480,000
Total ..................................................... $950,000
a) What is the maximum amount of §179 expense Timberline may deduct for 2014? What is Timberline's §179 carryforward to 2015, if any?
b) What would Timberline's maximum depreciation expense be for 2014assuming no bonus depreciation?
c) What would Timberline's maximum depreciation expense be for 2014if the furniture cost $2,000,000 instead of $350,000 and assuming no bonus depreciation?