Assume Timberline Corporations 2020 taxable income of $240,000 for purposes of computing the 179 expense It acquired the following assets in 2020 Asset Purchase Date Basis Furniture (7 year) December 1 $450,000 Computer equipment (5 year) February 28 90,000 Copier (5 year) July 15 30,000 Machinery ...

a The maximum 179 expense would be 240000 and the carryforward to 2021 would be 800000 Description Amount Explanation 1 Property placed in service 105 ...

Assume Timberline Corporations 2020 taxable income of $240,000 for purposes of computing the 179 expense. It acquired

Question:

Assume Timberline Corporation’s 2020 taxable income of $240,000 for purposes of computing the §179 expense. It acquired the following assets in 2020:

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

a) What is the maximum amount of §179 expense Timberline may deduct for 2020? What is Timberline’s §179 carryforward to 2021, if any?

b) What would Timberline’s maximum depreciation deduction be for 2020 assuming no bonus depreciation?

c) What would Timberline’s maximum depreciation deduction be for 2020 if the machinery cost $3,500,000 instead of $480,000 and assuming no bonus depreciation?

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