Assume that Timberline Corporation has 2021 taxable income of $240,000 for purposes of computing the §179 expense. It acquired the following assets in 2021: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)

Asset	Purchase Date	Basis
Furniture (7-year)	December 1	$ 444,000
Computer equipment (5-year)	February 28	92,000
Copier (5-year)	July 15	32,000
Machinery (7-year)	May 22	482,000
Total		$ 1,050,000

Required:

a-1. What is the maximum amount of §179 expense Timberline may deduct for 2021?

a-2. What is Timberline’s §179 carryforward to 2022, if any?

b. What would Timberline’s maximum depreciation deduction be for 2021 assuming no bonus depreciation?

c. What would Timberline’s maximum depreciation deduction be for 2021 if the machinery cost $3,500,000 instead of $480,000 and assuming no bonus depreciation?

Answer rating: 100% (QA)

Particulars 1 Total Cost of Property 2 Threshold for 179 phaseout 2021 Amount 1050000 Total 5179qua... View the full answer