Homework SourseAssume that Timberline Corporation has 2017 taxable income o
Assume that Timberline Corporation has 2017 taxable income of $240,000 for purposes of computing the §179 expense. It acquired the following assets in 2017: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
b. What would Timberline’s maximum depreciation expense be for 2017 assuming no bonus depreciation?
| Purchase | |||
| Asset | Date | Basis | |
| Furniture (7-year) | December 1 | $ | 350,000 |
| Computer equipment (5-year) | February 28 | 90,000 | |
| Copier (5-year) | July 15 | 30,000 | |
| Machinery (7-year) | May 22 | 480,000 | |
| Total | $ | 950,000 | |
Solution
solution:- 1.furniture ( 7 years )=350000*14.29%=50015
computer equipment ( 5 years)=90000*20%=18000
copier ( 5 year)=30000*20%=6000
machinery ( 7 years) = 480000*14.29%=68592
total depreciation expense=142607
* half year convention has been followed throughout in all cases.
