Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Original Basis $ 88,500 101,250 251,000 Purchase Asset Date Drill bits (5-year) Drill bits (5-year) Commercial building January 25 July 25 April 22 Assume its taxable income for the year was $60,000 for purposes of computing the $179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Leave no answer blank. Enter zero if applicable.) c. If the January drill bits’ original basis was $2,514,000, what is the maximum amount of §179 expense Dain's may deduct for the year?
Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Original Basis $ 88,500 101,250 251,000 Purchase Asset Date Drill bits (5-year) Drill bits (5-year) Commercial building January 25 July 25 April 22 Assume its taxable income for the year was $60,000 for purposes of computing the $179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Leave no answer blank. Enter zero if applicable.) c. If the January drill bits’ original basis was $2,514,000, what is the maximum amount of §179 expense Dain's may deduct for the year?
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 2BCRQ
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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.
Purchase
Original
Asset
Date
Basis
Drill bits (5-year)
Drill bits (5-year)
Commercial building
January 25
July 25
April 22
$ 88,500
101,250
251,000
Assume its taxable income for the year was $60,000 for purposes of computing the §179 expense (assume no bonus
depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Leave no answer blank. Enter zero if
applicable.)
c. If the January drill bits' original basis was $2,514,000, what is the maximum amount of §179 expense Dain's may deduct for the year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc08eb3ba-38e7-4860-aa70-a78fcc1253a8%2Fde4d1604-7f0b-4a42-a41b-f564b12e9b61%2F2mck5gt_processed.png&w=3840&q=75)
Transcribed Image Text:Check my work
!
Required information
[The following information applies to the questions displayed below.]
Dain's Diamond Bit Drilling purchased the following assets this year.
Purchase
Original
Asset
Date
Basis
Drill bits (5-year)
Drill bits (5-year)
Commercial building
January 25
July 25
April 22
$ 88,500
101,250
251,000
Assume its taxable income for the year was $60,000 for purposes of computing the §179 expense (assume no bonus
depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Leave no answer blank. Enter zero if
applicable.)
c. If the January drill bits' original basis was $2,514,000, what is the maximum amount of §179 expense Dain's may deduct for the year?
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