10 Required information Problem 10-58 (LO 10-2, LO 10-3) (Static) The following information applies to the questions displayed below.) Part 1 of 3 - Assume that Timberline Corporation has 2020 taxable income of $240,000 for purposes of computing the $179 expense. It acquired the following assets in 2020: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) 5/10 points awarded Scored Asset Furniture (7-year) Computer equipment (5-year) Copier (5-year) Machinery (7-year) Total Purchase Date December 1 February 28 July 15 May 22 Basis $ 450,000 90,000 30,000 480,000 $1,050,000 Problem 10-58 Part a (Static) Required: a-1. What is the maximum amount of $179 expense Timberline may deduct for 2020? a-2. What is Timberline's $179 carryforward to 2021, if any? Maximum $179 expense 240,000 1. Maximum $179 carryforward $ 780,000 X 2 11 Required information Problem 10-58 (LO 10-2, LO 10-3) (Static) (The following information applies to the questions displayed below.] Part 2 of 3 Assume that Timberline Corporation has 2020 taxable income of $240,000 for purposes of computing the $179 expense. It acquired the following assets in 2020: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) 0/10 points awarded Basis Scored Asset Furniture (7-year) Computer equipment (5-year) Copier (5-year) Machinery (7-year) Total Purchase Date December 1 February 28 July 15 May 22 $ 450,000 90,000 30,000 480,000 $1,050,000 Problem 10-58 Part b (Static) b. What would Timberline's maximum depreciation deduction be for 2020 assuming no bonus depreciation? Maximum Depreciation Deduction (including $179 expense) $ 0 X 12 Required information Problem 10-58 (LO 10-2, LO 10-3) (Static) [The following information applies to the questions displayed below.] Part 3 of 3 Assume that Timberline Corporation has 2020 taxable income of $240,000 for purposes of computing the $179 expense. It acquired the following assets in 2020: (Use MACRS Table 1, Table 2. Table 3, Table 4 and Table 5.) 0/10 points awarded Scored Asset Furniture (7-year) Computer equipment (5-year) Copier (5-year) Machinery (7-year) Total Purchase Date December 1 February 28 July 15 May 22 Basis $ 450,000 90,000 30,000 480,000 $1,050,000 Problem 10-58 Part c (Static) c. What would Timberline's maximum depreciation deduction be for 2020 if the machinery cost $3,500,000 instead of $480,000 and assuming no bonus depreciation? Maximum Depreciation deduction (including $179 expense) $ 105,615 X