Dain’s Diamond Bit Drilling purchased the following assets this year.

	Purchase	Original
Asset	Date	Basis
Drill bits (5-year)	January 25	$	128,500
Drill bits (5-year)	July 25		141,000
Commercial building	April 22		294,000

Assume its taxable income for the year was $56,500 for purposes of computing the §179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)

a. What is the maximum amount of §179 expense Dain's may deduct for the year?

b. What is Dain’s maximum depreciation deduction for the year (including §179 expense)?

c. If the February drill bits’ original basis was $2,494,500, what is the maximum amount of §179 expense Dain's may deduct for the year?

d. If the February drill bits’ original basis was $21,834,500, what is the maximum amount of §179 expense Dain's may deduct for the year?