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 Table 1, Table 2, Table 3, Table 4 and Table 5.) 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
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 Table 1, Table 2, Table 3, Table 4 and Table 5.) 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
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 37P
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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 Table 1, Table 2, Table 3, Table 4 and Table 5.)
| 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 | |
|
|
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a-1. What is the maximum amount of §179 expense Timberline may deduct for 2019?
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a-2. What is Timberline’s §179 carryforward to 2020, if any?
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