Question
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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started