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PLEASE HELP ASAP!!! Dain's Diamond Bit Drilling purchased the following assets this year. Asset Purchase Date Original Basis Drill bits (5-year) March 19 $ 91,200

PLEASE HELP ASAP!!!

Dain's Diamond Bit Drilling purchased the following assets this year.

Asset Purchase Date Original Basis
Drill bits (5-year) March 19 $ 91,200
Drill bits (5-year) September 20 96,200
Commercial building June 22 244,000

Assume its taxable income for the year was $65,000 for purposes of computing the 179 expense (assume no bonus depreciation). (Use MACRS)

Note: Leave no answer blank. Enter zero if applicable.

Problem 10-59 Part a (Algo)

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

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

c. If the January drill bits' original basis was $2,887,000, what is the maximum amount of 179 expense Dain's may deduct for the year?

d. If the January drill bits' original basis was $3,887,000, what is the maximum amount of 179 expense Dain's may deduct for the year?

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