Question
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 | |
|
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a-1. What is the maximum amount of 179 expense Timberline may deduct for 2020?
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a-2. What is Timberlines 179 carryforward to 2021, if any?
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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.)
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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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