Question
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. What is the maximum amount of 179 expense Dain may deduct for the year?
179 expense----------------------?
b. What is Dains maximum depreciation deduction for the year (including 179 expense)? (Round your intermediate calculations to the nearest whole dollar amount.)
Depreciation Expenses (Including 179 expense)----------------------?
c. 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-------------------------?
d. If the January drill bits basis was $6,638,000, what is the maximum amount of 179 expense Dain may deduct for the year?
179 expense-------------------------?
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