[The following information applies to the questions displayed below.) Assume that Timberline Corporation has 2020 taxable income of $266,000 for purposes of computing the §179 expense. It acquired the following assets in 2020: (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 476,000 116,000 56,000 506,000 $1,154,000 Required: a-1. What is the maximum amount of 5179 expense Timberline may deduct for 2020? a-2. What is Timberline's $179 carryforward to 2021, if any?
[The following information applies to the questions displayed below.) Assume that Timberline Corporation has 2020 taxable income of $266,000 for purposes of computing the §179 expense. It acquired the following assets in 2020: (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 476,000 116,000 56,000 506,000 $1,154,000 Required: a-1. What is the maximum amount of 5179 expense Timberline may deduct for 2020? a-2. What is Timberline's $179 carryforward to 2021, if any?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
D
![Required information
[The following information applies to the questions displayed below.]
Assume that Timberline Corporation has 2020 taxable income of $266,000 for purposes of computing the
§179 expense. It acquired the following assets in 2020: (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
a-1.
a-2.
Purchase
Date
Required:
a-1. What is the maximum amount of $179 expense Timberline may deduct for 2020?
a-2. What is Timberline's $179 carryforward to 2021, if any?
Maximum $179 expense
Maximum §179 carryforward
December 1
February 28
July 15
May 22
Basis
476,000
116,000
56,000
506,000
$1,154,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc010707c-ef5e-4dc9-9402-90a4d2eb2d16%2F3868c841-d248-4df9-8509-707751fbe825%2Fxfhjp5d_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 2020 taxable income of $266,000 for purposes of computing the
§179 expense. It acquired the following assets in 2020: (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
a-1.
a-2.
Purchase
Date
Required:
a-1. What is the maximum amount of $179 expense Timberline may deduct for 2020?
a-2. What is Timberline's $179 carryforward to 2021, if any?
Maximum $179 expense
Maximum §179 carryforward
December 1
February 28
July 15
May 22
Basis
476,000
116,000
56,000
506,000
$1,154,000
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