Assume that Timberline Corporation has 2023 taxable income of $248,000 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.)AssetFurniture (7-year)Computer equipment (5-year)Copier (5-year)Machinery (7-year)TotalProblem 10-58 Part a (Algo)Purchase DateDecember 1February 28a-1. Maximum §179 expensea-2. Maximum §179 carryforward to 2023July 15May 22Required:a-1. What is the maximum amount of $179 expense Timberline may deduct for 2023?a-2. What is Timberline's §179 carryforward to 2024, if any?$ 1,050,000$Basis$ 526,00098,00038,000588,000$ 1,250,0000

Timberline Corporation has 2023 taxable income of $248,000 and acquired several assets in 2023. We…

Answered: Required: a-1. What is the maximum…

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Assume that Timberline Corporation has 2023 taxable income of $248,000 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.)
Asset
Furniture (7-year)
Computer equipment (5-year)
Copier (5-year)
Machinery (7-year)
Total
Problem 10-58 Part a (Algo)
Purchase Date
December 1
February 28
a-1. Maximum §179 expense
a-2. Maximum §179 carryforward to 2023
July 15
May 22
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?
$ 1,050,000
$
Basis
$ 526,000
98,000
38,000
588,000
$ 1,250,000
0

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