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.)

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 15DQ
icon
Related questions
Question

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

 

     
  1. a-1. What is the maximum amount of §179 expense Timberline may deduct for 2019?
  2. a-2. What is Timberline’s §179 carryforward to 2020, if any?
  3. 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.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage