c. If the January drill bits' original basis was $2,885,000, what is the maximum amount of $179 expense Dain's may deduct for the year? §179 expense $ 148,706
c. If the January drill bits' original basis was $2,885,000, what is the maximum amount of $179 expense Dain's may deduct for the year? §179 expense $ 148,706
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 2BCRQ
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8
![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
§179 expense
Purchase Date
Jan-29
Aug-11
Jun-11
Original
Basis
Assume its taxable income for the year was $63,000 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.
$ 148,706
$ 91,000
96,000
240,000
c. If the January drill bits' original basis was $2,885,000, what is the maximum amount of §179 expense Dain's may
deduct for the year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ebee747-9a94-438b-80c8-0b3b296e8c92%2F9960e499-5bbd-4a95-bb40-a5479eb91830%2Fqqe6rl5_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
§179 expense
Purchase Date
Jan-29
Aug-11
Jun-11
Original
Basis
Assume its taxable income for the year was $63,000 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.
$ 148,706
$ 91,000
96,000
240,000
c. If the January drill bits' original basis was $2,885,000, what is the maximum amount of §179 expense Dain's may
deduct for the year?
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