[The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date March 03 July 17 May-26 Original Basis $ 90,800 95,800 236,000 Assume its taxable income for the year was $61,000 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.)
[The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date March 03 July 17 May-26 Original Basis $ 90,800 95,800 236,000 Assume its taxable income for the year was $61,000 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Drill bits (5-year)
Drill bits (5-year)
Commercial building
Purchase Date
March 03
July 17
May-26
Original
Basis
$ 90,800
95,800
236,000
Assume its taxable income for the year was $61,000 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.)
Depreciation Deduction (including §179 expense)
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.)
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe7a0cf67-f446-4d11-88c3-88cdeff8ab82%2Ff10e0bc2-8842-4c18-a58f-99890a4ad090%2Fugodi4n_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
Drill bits (5-year)
Drill bits (5-year)
Commercial building
Purchase Date
March 03
July 17
May-26
Original
Basis
$ 90,800
95,800
236,000
Assume its taxable income for the year was $61,000 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.)
Depreciation Deduction (including §179 expense)
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.)
$
0
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