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-03 Jul-17 May-26 Original Basis $ 90,800 95,800 236,000 Assume its taxable income for the year was $61,000 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. Problem 10-59 Part d (Algo) d. If the January drill bits' original basis was $4,283,000, what is the maximum amount of $179 expense Dain's may deduct for the year?
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-03 Jul-17 May-26 Original Basis $ 90,800 95,800 236,000 Assume its taxable income for the year was $61,000 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. Problem 10-59 Part d (Algo) d. If the January drill bits' original basis was $4,283,000, what is the maximum amount of $179 expense Dain's may deduct for the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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-03
Jul-17
May-26
Problem 10-59 Part d (Algo)
Assume its taxable income for the year was $61,000 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.
Maximum §179 expense
Original
Basis
$ 90,800
95,800
236,000
d. If the January drill bits' original basis was $4,283,000, what is the maximum amount of §179 expense Dain's may deduct for the year?
$ 3,426,400 x
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