Assume that Timberline Corporation has 2023 taxable income of $240,000 for purposes of computing the $179 expens It acquired the following assets in 2023: (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) 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 $ 550,000 90,000 30,000 580,000 $ 1,250,000
Assume that Timberline Corporation has 2023 taxable income of $240,000 for purposes of computing the $179 expens It acquired the following assets in 2023: (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) 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 $ 550,000 90,000 30,000 580,000 $ 1,250,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Assume that Timberline Corporation has 2023 taxable income of $240,000 for purposes of computing the §179 expense.
It acquired the following assets in 2023: (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.)
Purchase Date
December 1
Asset
Furniture (7-year)
Basis
$ 550,000
Computer equipment (5-year)
February 28
90,000
Copier (5-year)
July 15
Machinery (7-year)
May 22
30,000
580,000
Total
$ 1,250,000
Required:
a-1. What is the maximum amount of $179 expense Timberline may deduct for 2023?
a-2. What is Timberline's §179 carryforward to 2024, if any?
Answer is complete but not entirely correct.
a-1. Maximum §179 expense
$
391,181
a-2. Maximum §179 carryforward to 2023
$ 858,819x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2918153e-3606-414e-b88e-b539d7e9775e%2F5c5e7972-8a17-4486-bea6-dddde46d8c70%2Fv9x4jri_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Assume that Timberline Corporation has 2023 taxable income of $240,000 for purposes of computing the §179 expense.
It acquired the following assets in 2023: (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.)
Purchase Date
December 1
Asset
Furniture (7-year)
Basis
$ 550,000
Computer equipment (5-year)
February 28
90,000
Copier (5-year)
July 15
Machinery (7-year)
May 22
30,000
580,000
Total
$ 1,250,000
Required:
a-1. What is the maximum amount of $179 expense Timberline may deduct for 2023?
a-2. What is Timberline's §179 carryforward to 2024, if any?
Answer is complete but not entirely correct.
a-1. Maximum §179 expense
$
391,181
a-2. Maximum §179 carryforward to 2023
$ 858,819x
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