Assume that Timberline Corporation has 2016 taxable income of $240,000 before the §179 expense.

Asset Purchase Date Basis Furniture (7-year) December 1 $350,000 Computer equipment (5-year) February 28 90,000 Copier (5-year) July 15 30,000 Machinery (7-year) May 22 480,000 Total $950,000

a) What is the maximum amount of §179 expense Timberline may deduct for 2016? What is Timberline’s §179 carryforward to 2017, if any?

b) What would Timberline’s maximum depreciation expense be for 2016 assuming no bonus depreciation?

c) What would Timberline’s maximum depreciation expense be for 2016 if the furniture cost $2,000,000 instead of $350,000 and assuming no bonus depreciation?