Assume that Timberline Corporation has 2016 taxable income of $240,000 before the 179 expense. (Use MACRSTable 1,Table 2,Table 3,Table 4andTable 5.)

	Purchase
Asset	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-1. What is the maximum amount of 179 expense Timberline may deduct for 2016?

Section 179 Expense $______________

a-2. What is Timberlines 179 carryforward to 2017, if any?

Section 179 Carry foward $______________

b. What would Timberlines maximum depreciation expense be for 2016 assuming no bonus depreciation?

Depreciation expense (including Section 179 expense) $_______________

c. What would Timberlines maximum depreciation expense be for 2016 if the furniture cost $2,000,000 instead of $350,000 and assuming no bonus depreciation?

Depreciation expense (including 179 expense) $_______________