b. What would Timberline's maximum depreciation deduction be for 2022 assuming no bonus depreciation?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
c. What would Timberline's maximum depreciation deduction be for 2022 if the machinery cost $3,740,000 instead of $464,000 and assuming no bonus depreciation?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
Required Information
[The following information applies to the questions displayed below.]
Assume that Timberline Corporation has 2022 taxable income of $264,000 for purposes of computing the 9 expense. It acquired the following assets in 2022: (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
$418,000
$114,000
$54,000
$464,000
$1,050,000
Required:
a-1. What is the maximum amount of 9 expense Timberline may deduct for 2022?
a-2. What is Timberline's 9 carryforward to 2023, if any?
a-1. Maximum 9 expense $264,000
a-2. Maximum 9 carryforward to 2023 $786,000