Question
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)
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).
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)?
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Practical Steps To Forensic Auditing And Fraud Investigation
Authors: Enape Victoria Ayishetu
1st Edition
1669867048, 978-1669867043
