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Dains Diamond Bit Drilling purchased the following assets this year. Purchase Original Asset Date Basis Drill bits (5-year) Jan-23 $ 125,500 Drill bits (5-year) Sep-21

Dains Diamond Bit Drilling purchased the following assets this year.

Purchase Original
Asset Date Basis
Drill bits (5-year) Jan-23 $ 125,500
Drill bits (5-year) Sep-21 130,750
Commercial building May-17 319,000

Assume its taxable income for the year was $57,750 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. If the January drill bits original basis was $2,378,000, what is the maximum amount of 179 expense Dain may deduct for the year?

179 expense-----------------------?

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