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Dain's Diamond Bit Drilling purchased the following assets this year. Purchase Original Basis Asset Date Drill bits (5-year) Drill bits (5-year) Commercial building January 25 July 25 April 22 $ 115,000 118,500 299,000 Assume its taxable income for the year was $76,500 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.) b. What is Dain's maximum depreciation deduction for the year (including §179 expense)? (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. Purchase Original Basis Asset Date Drill bits (5-year) Drill bits (5-year) Commercial building January 25 July 25 April 22 $ 115,000 118,500 299,000 Assume its taxable income for the year was $76,500 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.) b. What is Dain's maximum depreciation deduction for the year (including §179 expense)? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Depreciation Deduction (including $179 expense)

SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 51P
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Dain's Diamond Bit Drilling purchased the following assets this year. Original Basis $ 115,000 118,500 299,000 Purchase Asset Date Drill bits (5-year) Drill bits (5-year) January 25 July 25 April 22 Commercial building Assume its taxable income for the year was $76,500 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.) b. What is Dain's maximum depreciation deduction for the year (including §179 expense)? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Depreciation Deduction (including §179 expense)
Transcribed Image Text:Dain's Diamond Bit Drilling purchased the following assets this year. Original Basis $ 115,000 118,500 299,000 Purchase Asset Date Drill bits (5-year) Drill bits (5-year) January 25 July 25 April 22 Commercial building Assume its taxable income for the year was $76,500 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.) b. What is Dain's maximum depreciation deduction for the year (including §179 expense)? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Depreciation Deduction (including §179 expense)
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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