Dain's Diamond Bit Drilling purchased the following assets this year. Assume its taxable income for the year was $53,000 before deducting any 179 expense (assume no bonus depreciation but assume that the 2014 179 limits are extended to 2015).

Page 10-52

Asset

Purchase Date

Original Basis

Drill bits (5-year)

January 25

$90,000

Drill bits (5-year)

July 25

95,000

Commercial building

April 22

220,000

What is the maximum amount of 179 expense Dain may deduct for the year?

What is Dain's maximum depreciation expense for the year (including 179 expense)?

If the January drill bits original basis was $2,375,000, what is the maximum amount of 179 expense Dain may deduct for the year?

If the January drill bits basis was $2,495,000, what is the maximum amount of 179 expense Dain may deduct for the year?