! Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Asset Purchase Date Original Basis Drill bits (5-year) Jan-29 $ 91,000 Drill bits (5-year) Aug-11 Jun-11 96,000 240,000 Commercial building Assume its taxable income for the year was $63,000 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 $179 expense)? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Depreciation Deduction (including $179 expense)
! Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Asset Purchase Date Original Basis Drill bits (5-year) Jan-29 $ 91,000 Drill bits (5-year) Aug-11 Jun-11 96,000 240,000 Commercial building Assume its taxable income for the year was $63,000 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 $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
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Question
Gadubhi
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Required information
[The following information applies to the questions displayed below.]
Dain's Diamond Bit Drilling purchased the following assets this year.
Asset
Purchase Date
Original
Basis
Drill bits (5-year)
Jan-29
$ 91,000
Drill bits (5-year)
Aug-11
Jun-11
96,000
240,000
Commercial building
Assume its taxable income for the year was $63,000 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 $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%2Fcc3a0cc9-5a42-4c3f-ad4a-a8e8059af464%2F9fec3ce2-242d-4c6f-8101-507e65ce04e8%2F977bzl4_processed.jpeg&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
Purchase Date
Original
Basis
Drill bits (5-year)
Jan-29
$ 91,000
Drill bits (5-year)
Aug-11
Jun-11
96,000
240,000
Commercial building
Assume its taxable income for the year was $63,000 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 $179 expense)?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
Depreciation Deduction (including $179 expense)
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