Question
Assume that Timberline Corporation has 2019 taxable income of $270,000 for purposes of computing the 179 expense. It acquired the following assets in 2019: (Use
Assume that Timberline Corporation has 2019 taxable income of $270,000 for purposes of computing the 179 expense. It acquired the following assets in 2019: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
| Purchase | |||
| Asset | Date | Basis | |
| Furniture (7-year) | December 1 | $ | 480,000 |
| Computer equipment (5-year) | February 28 | 120,000 | |
| Copier (5-year) | July 15 | 60,000 | |
| Machinery (7-year) | May 22 | 510,000 | |
| Total | $ | 1,170,000 | |
|
| |||
Required:
-
a-1. What is the maximum amount of 179 expense Timberline may deduct for 2019?
-
a-2. What is Timberlines 179 carryforward to 2020, if any?
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
0077664078, 978-0077664077, 78111048, 978-0078111044
