Assume that Timberline Corporation has 2023 taxable income of $284,000 for purposes of computing the 179 expense. It acquired the following assets in 2023: (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Purchase Asset Date Basis Furniture (7-year) December 1 $ 538,000 Computer equipment (5- February 134,000 year) 28 Copier (5-year) July 15 74,000 Machinery (7-year) May 22 504,000 $ Tatal 1,250,000 a. What would Timberline's maximum depreciation deduction be for 2023 assuming no bonus depreciation? b. What would Timberline's maximum depreciation deduction be for 2023 if the machinery cost $3,940,000 instead of $504,000 and assuming no bonus depreciation? Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33% 20.00% 4.29% 0.00% 5.00% 3.750% Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7.4 11.52 2.49 11.52 7.70 5.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92 7.37 6.23 5.285 Year 8.93 ).55 5.90 4.888 Year 4.46 6.55 5.90 4.522 Year 9 5.56 5.91 4.462 Year 10 5.55 5.90 4.461 Year 11 .28 5.9 1.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 5.90 4.461 Year 15 5.9 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 35.00% 25.00% Year 26.0 21.4 Year 3 15.60 5.31 Year 4 11.01 0.93 Year 5 1.0 3.75 Year 1.38 8.74 Year 8.75 Year 8 1.09 TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 30.0 23.47 Year 18.00 6.76 Year 4 11.37 1.97 Year 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 20.40 18.22 Year 4 2.2 13.02 Year 5 1.30 9.30 Year 7.06 3.85 Year 7 8.86 Year 8 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57% Year 38.00 27.55 Year 22.80 19.68 Year 4 13.68 14.06 Year 5 0.94 10.04 Year 9.58 3.73 Year 8.73 Year 8 7.64TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Year 1 3.485% 3.182% Month 10 Month 11 Month 12 2.879% 2.576% 2.273% 1.970% 1.667% 1.364% 1.061% 0.758% Year 2-9 0.455% 3.636 0.152% 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 10 3.636 3.637 3.637 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 Year 11 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 Year 12 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 Year 13 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 Year 16 3.637 3.637 3.637 3.637 3.637 :.637 3.637 3.637 3.636 3.636 3.636 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 Year 18 3.637 3.63 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 Year 19 3.636 .636 3.636 3.636 3.636 3.636 .636 .636 .636 .637 3.637 3.637 3.637 .637 Year 20 3.637 3.63 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 Year 21 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 Year 22 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 Year 23 3.636 3.636 3.636 .636 3.636 3.636 .636 .636 3.637 3.637 3.637 Year 24 3.637 3.637 3.637 3.63 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 Year 25 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 Year 26 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 Year 27 3.636 3.636 .636 3.636 .636 .636 3.636 3.637 3.637 3.637 3.637 3.637 Year 28 3.637 1.9 2.273 2.576 2.879 3.182 3.485 3.636 3.636 3.636 3.636 Year 29 3.636 3.636 0.152 0.455 0.758 1.061 1.364 1.667TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line-31.5 Years (for assets placed in service before May 13, 1993) Month 1 Month 2 Month Property Placed in Service Month 3 Month 4 Year 1 Month 5 3.042% Month 6 2.778% Month 7 2.513% Month 8 Month 9 Month 10 Year 2-7 2.249% 1.984% .720% Month 11 3.175 3.175 1.455% Month 12 3.175 1.190% 0.926% 0.661% Year 8 3.175 3.175 .175 0.397% 3.175 3.174 3.175 3.175 3.174 3.175 0.132% 3.175 3.175 Year 9 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.175 3.175 Year 10 3.175 3.174 3.175 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.175 Year 11 3.174 3.17 3.174 3.174 3.174 3.174 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 12 3.175 3.175 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 Year 13 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 Year 14 3.175 .175 3.174 3.175 3.174 3.175 3.174 3.174 .175 .174 3.175 3.175 3.174 3.175 3.174 3.175 Year 15 3.174 3.174 3.175 i.174 3.174 1.175 3.175 3.174 3.175 3.175 3.174 3.175 Year 16 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 Year 17 3.174 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 Year 18 3.17 3.17 3.175 3.174 3.174 3.175 3.175 3.175 3.175 3.174 3.174 3.175 3.174 Year 19 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 Year 20 3.175 3.174 3.175 3.174 3.175 3.174 .175 3.175 3.174 3.175 3.174 3.174 3.175 3.175 3.174 .174 3.175 3.174 Year 21 3.175 .174 3.17 3.175 3.174 3.174 3.175 3.174 Year 22 3.175 3.175 3.174 3.175 3.174 3.17 .175 3.175 3.174 3.174 3.175 3.174 3.175 Year 23 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.175 Year 24 3.174 3.174 3.175 3.174 3.175 3.175 3.174 3.174 3.175 3.174 3.115 3.174 3.175 Year 25 3.174 3.174 3.17 3.175 3.174 3.174 3.175 3.175 3.174 3.175 3.174 Year 26 3.174 3.175 3.175 3.174 3.175 3.175 3.174 3.174 3.175 3.175 .174 3.174 Year 27 3.175 3.174 3.175 3.175 3.174 3.175 .174 3.174 .175 3.174 Year 28 3.175 5.174 5.175 5.175 3.175 3.174 3.174 .175 3.175 .174 3.174 .175 3.174 3.175 Year 29 3.174 3.175 .174 .174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.174 3.17 Year 30 3.174 3.175 3.175 3.174 3.174 3.174 1.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 Year 31 3.175 3.174 3.174 3.175 3.174 3.175 3.175 3.17 3.174 3.175 Year 32 1.720 3.175 3.174 1.984 3.174 3.175 3.174 2.249 2.513 3.175 2.778 3.174 3.175 .042 3.175 3.17 Year 33 3.175 3.174 3.175 3.174 3.175 0.132 3.174 0.397 0.661 0.926 1.190 1.455TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service 2461% 2247% 2.033% 1.819% 1.605% 1.391% 1L177% 0.963% 0.749% 0.535% 0.321% 2564 2564 2564 2.564 2564 2564 2564 2564 2.564 2564 Month 12 0.107% 2564 2564 0.107 0321 0.535 0.749 1177 1.391 1605 | 1819 | 2033 2247