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Assume that Timberline Corporation has 2020 taxable income of $286,000 for purposes of computing the 179 expense. It acquired the following assets in 2020: (Use

Assume that Timberline Corporation has 2020 taxable income of $286,000 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.)

Purchase
Asset Date Basis
Furniture (7-year) December 1 $ 496,000
Computer equipment (5-year) February 28 136,000
Copier (5-year) July 15 76,000
Machinery (7-year) May 22 526,000
Total $ 1,234,000

  1. a-1. What is the maximum amount of 179 expense Timberline may deduct for 2020?

  2. a-2. What is Timberlines 179 carryforward to 2021, if any?

  3. b. What would Timberlines maximum depreciation deduction be for 2020 assuming no bonus depreciation? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

  4. c. What would Timberlines maximum depreciation deduction be for 2020 if the machinery cost $3,960,000 instead of $526,000 and assuming no bonus depreciation? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

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