Dain's Diamond Bit Drilling purchased the following assets this year. Original Basis Asset Drill bits (5-year) Drill bits (5-year) Purchase Date January 25 $ July 25 Commercial building April 22 102,500 113,250 266,000 Assume its taxable income for the year was $55,250 for purposes of computing the §179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Leave no answer blank. Enter zero if applicable.) c. If the January drill bits' original basis was $2,491,500, 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. Original Basis Asset Drill bits (5-year) Drill bits (5-year) Purchase Date January 25 $ July 25 Commercial building April 22 102,500 113,250 266,000 Assume its taxable income for the year was $55,250 for purposes of computing the §179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Leave no answer blank. Enter zero if applicable.) c. If the January drill bits' original basis was $2,491,500, 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.
Purchase Original
Asset
Date
Drill bits (5-year)
January 25 $
Drill bits (5-year)
July 25
Commercial building April 22
Basis
102,500
113,250
266,000
Assume its taxable income for the year was $55,250 for purposes of computing the §179 expense
(assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Leave no
answer blank. Enter zero if applicable.)
c. If the January drill bits' original basis was $2,491,500, what is the maximum amount of $179 expense
Dain's may deduct for the year?
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