Dains Diamond Bit Drilling purchased the following assets this year. PurchaseOriginal AssetDateBasis Drill bits (5-year)Mar-28$106,000 Drill bits (5-year)Aug-18 130,500 Commercial buildingJun-02 283,000 Assume its taxable
Dains Diamond Bit Drilling purchased the following assets this year.
PurchaseOriginal
AssetDateBasis
Drill bits (5-year)Mar-28$106,000
Drill bits (5-year)Aug-18 130,500
Commercial buildingJun-02 283,000
Assume its taxable income for the year was $61,750 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.)
a. What is the maximum amount of 179 expense Dain's may deduct for the year?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Albrecht Stice, Stice Swain
11th Edition
978-0538750196, 538745487, 538750197, 978-0538745482
