Problem - Assume that Timberline Corporation has 2012 taxable income of $100,000 before the §179 expense (assume no bonus depreciation).
Asset Purchase Date Basis
Furniture (7-year) December 1 $ 200,000
Computer equipment (5-year) February 28 $ 90,000
Copier (5-year) July 15 $ 30,000
Machinery (7-year) May 22 $ 180,000
Total $ 500,000
a. What is the maximum amount of §179 expense Timberline may deduct for 2012?
b. What would Timberline's maximum depreciation expense be for 2012?
c. What would Timberline's maximum depreciation expense be for 2012 if the furniture cost $600,000 instead of $200,000?