Dain's Diamond Bit Drilling purchased the following assets this year. Drill bits (5- year) Drill bits (5- year) Commercial building Purchase Original Date Basis January $109,000 25 July 25 121,500 April 22 263,000 Assume its taxable income for the year was $54,000 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.) Problem 10-59 Part a Algo) 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)? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) c. If the January drill bits original basis was $2,485,000, what is the maximum amount of $179 expense Dain's may deduct for the year? d. If the January drill bits original basis was $31,505,000, what is the maximum amount of $179 expense Dain's may deduct for the year? Dain's Diamond Bit Drilling purchased the following assets this year. Drill bits (5- year) Drill bits (5- year) Commercial building Purchase Original Date Basis January $109,000 25 July 25 121,500 April 22 263,000 Assume its taxable income for the year was $54,000 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.) Problem 10-59 Part a Algo) 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)? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) c. If the January drill bits original basis was $2,485,000, what is the maximum amount of $179 expense Dain's may deduct for the year? d. If the January drill bits original basis was $31,505,000, what is the maximum amount of $179 expense Dain's may deduct for the year
