depreciation? Lo 10.3 58. Assume that Timberline Corporation has 2018 taxable income of $240 LO 10-3 purposes of computing the $179 expense. It acquired the following assets in 2018: Asset Purchase Date Basis Furniture (7-year) Computer equipment (5-year) Copier (5-year) Machinery (7-year) Total December 1 $450,000 90,000 30,000 May 22480,000 $1,050,000 February 28 July 15 CHAPTER 1O Property Acquisition and Cost Recov a) What is the maximum amount of $179 expense Timberline may deduct for 2018? b) What would Timberline's maximum depreciation deduction be for 2018 assum- c) What would Timberline's maximum depreciation deduction be for 2018 if the What is Timberline's 8179 carryforward to 2019, if any? ing no bonus depreciation? machinery cost $3,000,000 instead of $480,000 and assuming no bonus depreciation? On 10-58a, set it up like this; all this part requires is the secion I99 akoul. (1) Total cost of property (2) Thres hold for $179 phase-out: 2.5M (3) Phase-out of Max Section 179 expense (1)-(2); if negative, O (4) Max 179 expense before phase-out: 1M (5) Phase-out of maximum $179 expense from (3) (6) Maximum 179 expense after phase-out (4) -(5)l; if negative, o (7) Taxable income before 179 deducten eiven) (8) 5179 expense after taxable income limitation: smaller of (6) or (7) 179 carryforward to next year: (6) (8) 9 On 10-58b There will be section 179 here; the amount is from part a Apply the 179 to items prior to the 4th quarter, so no mid-Q When determining the basis, take the section 179 from part g away from the cost of the furniture