Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date January 25 Original Basis $ 90,000 July 25 April 22 95,000 220,000 Assume its taxable income for the year was $53,000 for purposes of computing the $179 expen 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)
Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date January 25 Original Basis $ 90,000 July 25 April 22 95,000 220,000 Assume its taxable income for the year was $53,000 for purposes of computing the $179 expen 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)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
![!
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
January 25
Original
Basis
$ 90,000
July 25
April 22
95,000
220,000
Assume its taxable income for the year was $53,000 for purposes of computing the $179 expense (
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)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d3d8deb-8b5d-4bc6-b1e1-562032e8da26%2F1c031e08-5615-4f98-bb9d-7ca86468279b%2Fdlm4qsq_processed.png&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
January 25
Original
Basis
$ 90,000
July 25
April 22
95,000
220,000
Assume its taxable income for the year was $53,000 for purposes of computing the $179 expense (
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)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education