Question
Dains Diamond Bit Drilling purchased the following assets this year. Asset Purchase Date Original Basis Drill bits (5-year) 25-Jan $ 90,900 Drill bits (5-year) 25-Jul
Dains Diamond Bit Drilling purchased the following assets this year. Asset Purchase Date Original Basis Drill bits (5-year) 25-Jan $ 90,900 Drill bits (5-year) 25-Jul 95,900 Commercial building 22-Apr 238,000 Assume its taxable income for the year was $62,000 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.) rev: 12_17_2021_QC_CS-288299, 03_24_2022_QC_CS-300676 Problem 10-59 Part c (Algo) c. If the January drill bits original basis was $2,884,000, what is the maximum amount of 179 expense Dain's may deduct for the year?
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