Assume that Timberline Corporation has 2022 taxable income of $240,000 for purposes of computing the 179 expense.

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Assume that Timberline Corporation has 2022 taxable income of $240,000 for purposes of computing the §179 expense. It acquired the following assets in 2022:

a) What is the maximum amount of §179 expense Timberline may deduct for 2022? What is Timberline’s §179 carryforward to 2023, if any?
b) What would Timberline’s maximum depreciation deduction be for 2022 assuming no bonus depreciation?
c) What would Timberline’s maximum depreciation deduction be for 2022 if the machinery cost $3,500,000 instead of $480,000 and assuming no bonus depreciation?

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Taxation Of Individuals And Business Entities 2023 Edition

ISBN: 9781265790295

14th Edition

Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham

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