Assume that Timberline Corporation has 2015 taxable income of $240,000 before the §179 expense (assume the 2014 §179 limits are extended to 2015).

a) What is the maximum amount of §179 expense Timberline may deduct for 2015? What is Timberline's §179 carryforward to 2016, if any?
b) What would Timberline's maximum depreciation expense be for 2015 assuming no bonus depreciation?
c) What would Timberline's maximum depreciation expense be for 2015 if the furniture cost $2,000,000 instead of $350,000 and assuming no bonus depreciation?

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Purchase Date Basis Asset Furniture (7-year) Computer equipment (5-year) Copier (5-year) Machinery (7-year) December 1 February 28 July 15 May 22 $350,000 30,000 480,000 $950,000 Total