b. What is Dain's maximum depreciation deduction for the year (including §179 expense)? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Answer is complete but not entirely correct. $ 104,435 x Depreciation Deduction (including §179 expense)
b. What is Dain's maximum depreciation deduction for the year (including §179 expense)? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Answer is complete but not entirely correct. $ 104,435 x Depreciation Deduction (including §179 expense)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
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Dain's Diamond Bit Drilling purchased the following assets this year.
Asset
Drill bits (5-year)
Drill bits (5-year)
Commercial building
Purchase Date
Mar-13
Sep-05
May-19
Original
Basis
$ 92,400
97,400
268,000
Assume its taxable income for the year was $77,000 for purposes of computing the
§179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3,
Table 4, and Table 5.)
Note: Leave no answer blank. Enter zero if applicable.
b. What is Dain's maximum depreciation deduction for the year (including §179 expense)?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
Depreciation Deduction (including §179 expense)
> Answer is complete but not entirely correct.
$ 104,435 x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5d258d6-31f4-4f1a-92e2-729ad7d24c2d%2F7310527c-7eb0-4fa0-8c6f-f67854c2c88c%2Fgiel2cd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Dain's Diamond Bit Drilling purchased the following assets this year.
Asset
Drill bits (5-year)
Drill bits (5-year)
Commercial building
Purchase Date
Mar-13
Sep-05
May-19
Original
Basis
$ 92,400
97,400
268,000
Assume its taxable income for the year was $77,000 for purposes of computing the
§179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3,
Table 4, and Table 5.)
Note: Leave no answer blank. Enter zero if applicable.
b. What is Dain's maximum depreciation deduction for the year (including §179 expense)?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
Depreciation Deduction (including §179 expense)
> Answer is complete but not entirely correct.
$ 104,435 x
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