Assume that Timberline Corporation has 2016 taxable income of $240,000 before the §179 expense. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
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Purchase
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|
|
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Asset
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Date
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Basis
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Furniture (7-year)
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December 1
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$
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350,000
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Computer equipment (5-year)
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February 28
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90,000
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Copier (5-year)
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July 15
|
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30,000
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Machinery (7-year)
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May 22
|
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480,000
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Total
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$
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950,000
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a-1. What is the maximum amount of §179 expense Timberline may deduct for 2016?
Section 179 Expense $______________
a-2. What is Timberline's §179 carryforward to 2017, if any?
Section 179 Carry foward $______________
b. What would Timberline's maximum depreciation expense be for 2016 assuming no bonus depreciation?
Depreciation expense (including Section 179 expense) $_______________
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?
Depreciation expense (including 179 expense)