Question
Dains Diamond Bit Drilling purchased the following assets this year. Asset Purchase Date Original Basis Drill bits (5-year) January 25 $ 90,000 Drill bits
Dain’s Diamond Bit Drilling purchased the following assets this year.
| 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 |
Assume its taxable income for the year was $53,000 for purposes of computing the §179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
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.)
Step by Step Solution
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Step: 1
Dains maximum deprecation deduction which includes the Section 179 expense must be ascertained To do this first determine the depreciation of each ass...
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Essentials Of Federal Taxation 2019
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
10th Edition
1260189988, 1260189678, 9781260189674, 978-1259917103, 125991710X, 978-1260190045
