Problem 10-59 (LO 10-2, LO 10-3) (Algo) [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Assume its taxable income for the year was $61,000 for purposes of computing the $179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) 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. Assuming Dain's Diamond Bit Drilling elects the amount of 179 expense that it can actually deduct, what is Dain's total depreciation deduction for the year (including 179 expense)? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. c. If the January drill bits' original basis was $2,883,000, what is the maximum amount of 179 expense Dain's may deduct for the year? (Again, assume Dain's Diamond Bit Drilling only elects the amount of 179 expense that it can actually deduct). d. If the January drill bits' original basis was $3,883,000, what is the maximum amount of 179 expense Dain's may deduct for the year? (Again, assume Dain's Diamond Bit Drilling only elects the amount of 179 expense that it can actually deduct). Problem 10-59 (LO 10-2, LO 10-3) (Algo) [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Assume its taxable income for the year was $61,000 for purposes of computing the $179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) 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. Assuming Dain's Diamond Bit Drilling elects the amount of 179 expense that it can actually deduct, what is Dain's total depreciation deduction for the year (including 179 expense)? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. c. If the January drill bits' original basis was $2,883,000, what is the maximum amount of 179 expense Dain's may deduct for the year? (Again, assume Dain's Diamond Bit Drilling only elects the amount of 179 expense that it can actually deduct). d. If the January drill bits' original basis was $3,883,000, what is the maximum amount of 179 expense Dain's may deduct for the year? (Again, assume Dain's Diamond Bit Drilling only elects the amount of 179 expense that it can actually deduct)
