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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Asset Furniture (7-year) Computer equipment (5-year) Copier (5-year) Machinery (7-year) Total Purchase Date December 1 February 28 July 15 May 22 Basis $ 450,000 90,000 30,000 480,000 $1,050,000