Required information [The following information applies to the questions displayed below. Assume that Timberline Corporation has 2018 taxable income of $248,000 for purposes of computing the 5179 expense. It acquired the following assets in 2018: (Use MACRS Table 1, Table 2. Table 3. Table 4 and Table 5.) Purchase Basis Asset Date Furniture (7-year) Computer equipment (5-year) Copier (5-year) Machinery (7-year) Total ecember 1 $458,000 98, 000 38,008 488, 008 $1,082, 00 February 28 July 15 May 22 Required: a-1. What is the maximum amount of $179 expense Timberline may deduct for 2018? a-2. What is Timberline's $179 carryforward to 2019, if any? a-1 $179 expense a-2 b. What would Timberline's maximum depreciation deduction be for 2018 assuming no bonus depreciation? (Round your intermediat calculations to the nearest whole dollar amount.) Depreciation Deduction (ncluding 8179 expense) c. What would Timberline's maximum depreciation deduction be for 2018 if the machinery cost $3,080,000 instead of $488,000 and assuming no bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.) Depreciation deduction (including 179 expense) Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 33.33% 44.45 14.81 7.41 5-Year 20.00% 32.00 19.20 11.52 11.52 5.76 Year 10-Year 15-Year 20-Year 14.29% | 10.00% | 5.00% | 3.750% 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 7.219 24.49 17.49 12.49 8.93 8.92 8.93 4.46 6.677 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 35.00% 26.00 15.60 11.01 11.01 1.38 7-Year 25.00% 21.43 15.31 10.93 8.75 8.74 8.75 1.09 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 25.00% 30.00 18.00 11.37 11.37 4.26 7-Year 17.85% 23.47 16.76 11.97 8.87 8.87 8.87 3.34 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 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 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 15.00% 34.00 20.40 12.24 11.30 10.71% 25.51 18.22 13.02 9.30 8.85 8.86 5.53 7.06 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 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 5.00% 38.00 22.80 13.68 10.94 9.58 3.57% 27.55 19.68 14.06 10.04 8.73 8.73 7.64 Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6Month 7 Month 8 Month 9Month 10 Month 11 Month 12 ear Year 2-9 3.636 Year 103.637 Year11 3.636 Year 12 3.637 3.485% 3.182961 2.879% 2.576% 2.273% 1.97096 1.667% 1.364% 1.061% 0.758% 0.455% 0.152% 3.636 3.636 3.636 3.637 3.636 3.637 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.636 3.637 3.636 3.636 3.637 3.636 3,637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3,636 ear Year 14 3.637 Year 153.636 Year 16 3.637 Year 173,636 Year 18 3.637 Year 19 3.636 Year 20 3.637 3.6373.637 Year 2 3.636 Year 22 3.637 Year 23 3.636 Year 24 3.637 Year 25 3636 Year 26 3.637 Year 27 3.636 3,636 3.637 3.636 3.637 3.636 3.637 3.63 3,637 3.637 3.637 3.637 3,636 3.637 3.636 3,637 3.636 3.637 3.636 3.637 3.636 3,637 3.637 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3,636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.636 3.63 3.636 3.6 3.637 3.636 3.636 3.637 3.636 1.061 3,637 3.485 3.636 Year 29 TABLE 4 Nonresidential Rral Property Mid-Month Covention Straight Line 31.5 Years (for assets placed in service before May 13, 1993) Meath Property Placed in Service Menth 5 Monch 11 174 1175 1173 Year 18 1175 175 25t 2.778 Year 1 0133 0.397 1455 TABLE S Nonresidential Real Property Mid-Month Convention Straight Line-39 Years (for assets placed in service on or after May 13, 190) Month Property Placed in Service Month1 Month 2 Month 3 Month4 Month5Month 6Month 7 Month 8 Month9 Month 10 Month1 Month 12 Year 1 Year 2-39 Year 40 2.461% 2.564 0.107 2.247% 2.564 0.321 2.033% 2564 0.535 1.819% 2.564 0.749 1.605% 2.564 0.963 1.391% 1.177% 2.564 .391 0, 963% 2.564 1.60 0.749% 2.564 1819 535% 2.564 2.033 0.321% 2.564 2.247 0, 107% 2.564 2.461 2 564
