Dain's Diamond Bit Drilling purchased the following assets this year. Original Basis $ 90,400 95, 400 228,000 Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date February 13 August 25 May 22 Assume its taxable income for the year was $57,000 for purposes of computing the 5179 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 5179 expense)? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Depreciation Deduction (including 5179 expense)
Dain's Diamond Bit Drilling purchased the following assets this year. Original Basis $ 90,400 95, 400 228,000 Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date February 13 August 25 May 22 Assume its taxable income for the year was $57,000 for purposes of computing the 5179 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 5179 expense)? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Depreciation Deduction (including 5179 expense)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Qd 52.
Transcribed Image Text:Dain's Diamond Bit Drilling purchased the following assets this year.
Original
Basis
$ 90, 400
95, 400
228,000
Asset
Drill bits (5-year)
Drill bits (5-year)
Commercial building
Purchase Date
February 13
August 25
May 22
Assume its taxable income for the year was $57,000 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 5179 expense)?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
Depreciation Deduction (including 5179 expense)
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