Dain's Diamond Bit Drilling purchased the following assets this year.AssetPurchaseDateOriginalBasisDrill bits (5-January$90,000year)25Drill bits (5-July 2595,000year)Commercialbuilding220,000April 22Assume its taxable income for the year was $53,000 before deducting any $179expense (assume no bonus depreciation but assume that the 2014 $179 limits areextended to 2015). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Donot round intermediate calculations. Round your final answers to the nearestwhole dollar amount.)a.What is Dain's maximum §179 expense for the year?b.What is Dain's maximum depreciation expense for the year (including §179expense)?C.If the January drill bits' original basis was $2,375,000, what is Dain's maximum§179 expense for the year?d.If the January drill bits' basis was $2,495,000, what is Dain's maximum §179expense for the year?(Leave no answer blank. Enter zero if applicable.)

a. Dain’s Maximum §179 Expenses for the Year:The maximum §179 expense is limited to the taxable…

a. What is Dain's maximum §179 expense for the year? b. What is Dain's maximum depreciation expense for the year (including §179 expense)? If the January drill bits' original basis was $2,375,000, what is Dain's maximum §179 expense for the year? If the January drill bits' basis was $2,495,000, what is Dain's maximum §179

a. What is Dain's maximum §179 expense for the year? b. What is Dain's maximum depreciation expense for the year (including §179 expense)? If the January drill bits' original basis was $2,375,000, what is Dain's maximum §179 expense for the year? If the January drill bits' basis was $2,495,000, what is Dain's maximum §179

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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where did you get $1150/12 for the depreciaition expense
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Required information [The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2020. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2020: Date Placed in Asset Cost Service $ 360,000 1,602,000 82,000 Office furniture Machinery Used delivery truck* *Not considered a luxury automobile. 02/03/2020 07/22/2020 08/17/2020 During 2020, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2021 to increase its production capacity. These are the assets acquired during 2021: Date Placed in Asset Cost Service Computers and information system Luxury autot Assembly equipment Storage building $ 442,000 90,500 1,410,000 03/31/2021 05/26/2021 08/15/2021 11/13/2021 700,000 tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1,785,000 for purposes…
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7. Several years ago, Pentair purchased equipment for $23,500,000. Pentair uses straight-line depreciation for financial reporting and accelerated depreciation for tax purposes. At December 31, 2020, the carrying value of the equipment was $21,150,000 and its tax basis was $17,625,000. At December 31, 2021, the carrying value of the equipment was $18,800,000 and the tax basis was $12,925,000. There were no other temporary differences and no permanent differences. Pretax accounting income for the current year was $28,500,000. A tax rate of 25% applies to all years. Required:Prepare the journal entry to record Pentair's income tax expense for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)