Dains Diamond Bit Drilling purchased the following assets this year.

	Purchase	Original
Asset	Date	Basis
Drill bits (5-year)	Jan-29	$	92,000
Drill bits (5-year)	Aug-11		103,750
Commercial building	Jun-11		289,000

Assume its taxable income for the year was $75,500 for purposes of computing the 179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)

a. What is the maximum amount of 179 expense Dain's may deduct for the year?

b. What is Dains maximum depreciation deduction for the year (including 179 expense)?

c. If the January drill bits original basis was $2,520,000, what is the maximum amount of 179 expense Dain's may deduct for the year?

d. If the January drill bits original basis was $17,690,000, what is the maximum amount of 179 expense Dain's may deduct for the year?