Dains Diamond Bit Drilling purchased the following assets this year.

	Purchase	Original
Asset	Date	Basis
Drill bits (5-year)	January 25	$	90,000
Drill bits (5-year)	July 25		95,000
Commercial building	April 22		220,000

Assume its taxable income for the year was $53,000 for purposes of computing the 179 expense (assume no bonus depreciation).

If the January drill bits original basis was $3,875,000, what is the maximum amount of 179 expense Dain may deduct for the year?

If the January drill bits original basis was $2,875,000, what is the maximum amount of 179 expense Dain may deduct for the year?