Assume that Timberline Corporation has 2019 taxable income of $274,000 for purposes of computing the §179 expense. It acquired the following assets in 2019: (Use MACRS) Purchase AssetDate BasisFurniture (7-year)December 1$484,000Computer equipment (5-year)February 28 124,000Copier (5-year)July 15 64,000Machinery (7-year)May 22 514,000Total $1,186,000 a-1. What is the maximum amount of §179 expense Timberline may deduct for 2019?a-2. What is Timberline’s §179 carryforward to 2020, if any?b. What would Timberline’s maximum depreciation deduction be for 2019 assuming no bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.)

Depreciation: Depreciation can be defined as the charge on the fixed assets of the company that…

Answered: a-1. What is the maximum amount of §179…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Assume that Timberline Corporation has 2019 taxable income of $274,000 for purposes of computing the §179 expense. It acquired the following assets in 2019: (Use MACRS)

	Purchase
Asset	Date		Basis
Furniture (7-year)	December 1	$	484,000
Computer equipment (5-year)	February 28		124,000
Copier (5-year)	July 15		64,000
Machinery (7-year)	May 22		514,000
Total		$	1,186,000

a-1. What is the maximum amount of §179 expense Timberline may deduct for 2019?
a-2. What is Timberline’s §179 carryforward to 2020, if any?
b. What would Timberline’s maximum depreciation deduction be for 2019 assuming no bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.)

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