Required information Problem 10-58 (LO 10-2, LO 10-3) The following information

Question

Required information Problem 10-58 (LO 10-2, LO 10-3) The following information applies to the questions displayed below. Assume that Timberline Corporation has 2017 taxable income of $240,000 for purposes of computing the $129 expense. It acquired the following assets in 2017: (Use MACRS Table 1. Table 2. Table 3, Table 4 and Table 5.) Purchase Asset Date Basis Furniture (7-year) Computer equipnent (5-year) Copier (5-year) Machinery (7-year) Total February 28 July 15 May 22 December i s 350,000 90,000 30,000 480,000 $ 950,000 Problem 10-58 Part b b. What would Timberline's maximum depreciation expense be for 2017 assuming ndbonus depreciation? $179 e

Explanation / Answer

To avail depreciation/expense under section 179, company have to buy assets not more than $ 2,000,000.

According to details given in this situation, company have purchased $ 950,000 only during 2017.

So, The company can take depreciation upto $ 500,000 for the year 2017.

But, Company have a profit of $ 240,000 only.

So, Timberline's maximum depreciation expense for 2017 is $ 240,000 under section 179.

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