Assume that Timberline Corporation has 2017 taxable income of $240,000 for purpo

Question

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

Explanation / Answer

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.

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