Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date January 25 July 25 April 22 Original Basis $ 90,000 95,000 220,000 Assume its taxable income for the year was $53,000 for purposes of computing the $179 expense (assume no bonus depreciation) (Use MACRS Table 1. Table 2, Table 3, Table 4 and Table 5:) (Leave no answer blank. Enter zero if applicable.) a. What is the maximum amount of $179 expense Dain's may deduct for the year? $179 expense Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date January 25 July 25 April 22 Original Basis $ 90,000 95,000 220,000 Assume its taxable income for the year was $53,000 for purposes of computing the $179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2. Table 3, Table 4 and Table 5.) (Leave no answer blank. Enter zero if applicable.) b. What is Dain's maximum depreciation deduction for the year (including $179 expense)? (Round your intermediate calculations to the nearest whole dollar amount.) Depreciation expense (including $179 expense) Table 1 MACRS Half-Year Convention 3-Year 33.33% 44.45 14.81 7.41 T 9.50 L Depreciation Rate for Recovery Period 5-Year 7-Year 10-Year 15-Year 20-Year 20,00% 14.29% 10.00% 5.00% 3.750% 32.00 24.49 18.00 17.219 19.20 17.49 14.40 8.55 6.677 11.52 12.49 11.52 7.706 .177 11.52 8.93 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285 8.93 6.55 | 5.90 4.888 4.46 6.55 5.90 4.522 6.56 5.91 4.462 6.55 4.461 5.91 4.462 5.90 4.461 5.91 4.462 5.90 4.461 4.462 2.95 4.461 4.462 4.461 4.462 4.461 2.231 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 15.90 3.28 001010**|*|*|*|*|********* 5.91 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 35.00% | 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year 8 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 L 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 3 3.34 TABLE 2 MACRS Mid-Quarter Convention: For property placed in service during the third quarter 1 20.40 Depreciation Rate for Recovery Period 5-Year 17-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 3 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter 38.00 Depreciation Rate for Recovery Period 5-Year 7-Year Yearl 5.00% 3.57% Year 2 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Year 8 7.64 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line27.5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 3 Month 6 Month 7 | Month 3 Month 9 Month 10 Month 11 Month 12 Year 1 3.485% 3.182% 2.879% 2.576% 2.273% 1.970% 1.667% 1.364% 1.061% 0.758% 0.455% 0.152% Year 2-9 3.6363.6363.6363.6363.636 3.6363 .636 3.6363 .636 3.636 3.636 | 3.636 Year 103.637 3.637 3.637 3.6371 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 11 3.636 | 3.6363.636 3.636 | 3.6363.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 12 3.637 3.637 3.637 3.637 3.637 3.637 3.6363.6363.6363.636 3.636 3.636 Year 13 3.636 3.636 | 3.636 3 .636 3.636 | 3.636 3.637 3 .637 3.637 3.637 3.637 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.6363.6363.6363.6363.636 3.636 Year 15 3.636 3.636 3.636 | 3.636 | 3.636 3 .636 3.637 3.637 3.637 3.637 3.637 | 3.637 Year 163 .6373.6373.637 3.6373.637 3.637 3.6363.6363.6363.6363.6363.636 Year 17 3.636 3.6363.6363.6363.6363.6363.637 3.637 3.637 3.637 3.637 3.637 Year 18 3.6373.6373.637 3.6373.637 3.637 3.636 3.6363.6363.6363.6363.636 Year 19 3.636 3.636 3 .636 3.636 3.636 3.636 | 3.637 3 .637 3.637 3.637 3.637 3.637 Year 20 3.637 3.6373 .6373 .637 3.637 3.637 3.636 3.6363 .636 3.636 3.636 3.636 Year 21 13.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 22 3.637 3.637 3.637 3.637 3.637 3.637 3.6363.6363.6363.636 3.636 3.636 Year 23 3.636 3.6363.6363.6363.6363.636 3.637 3.6373.6373.637 3.637 3.637 Year 24 13.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.6363.6363.636 3.636 Year 25 3.636 | 3.6363.636 3.636 | 3.6363.636 3.637 3.637 3.6373.637 3.6373.637 Year 26 3.637 3.637 3.637 3.637 3.637 3.637 3.6363.6363.6363.636 3.636 3.636 Year 27 3.6363.6363.6363.6363.6363.636 3.637 3.637 3.6373.637 3.6373.637 Year 28 1.97 2.273 2.576 2.879 3.182 3.485 3.6363.636 3.6363.6363.6363.636 Year 29 0.152 0.455 0.758 1.061 1.364 1.667 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line31.5 Years (for assets placed in service before May 13, 1993) L L Year 2-7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Month 1 3.042% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Month 4 2.249% 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3 175 Month 9 0.926% 3.175 3.175 3.174 3.175 3.174 3.175 Month 11 0.397% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Month 12 0.132% 3.175 L 3.175 3.175 3.174 3.175 L 3.174 TL 3.175 3.174 3.175 L L 3.174 L Year 163.175 3.175 L 3.175 3.174 1 L T 3.174 Month 2 2.778% 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 1.984 Month 3 2.513% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 2.249 3.175 3.174 3.175 3.174 3.175 3.174 3.175 L Month Property Placed in Service Month 5 Month 6 Month 7 1.984% 1.720% 1.455% 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 L 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 L 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 2.778 3.042 3.175 0.132 1 Month 3 1.190% L 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.115 3.174 L 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 0.397 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Year 31 Year 32 Year 33 L TL 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1.720 3.174 Month 10 0.661% 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 0.926 L | L 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 2.513 1 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 1.190 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1.455 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 0.661 3.10 L L TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line39 Years (for assets placed in service on or after May 13, 1993) Yearl Year 2-39 Year 40 Month 1 2.461% 2.564 0.107 Month 2 2.247% 2.564 0.321 Month 3 2.033% 2.564 0.535 Month 4 1.819% 2.564 0.749 Month Property Placed in Service | Month 5 | Month 6 Month 7 1.605% 1.391% 1.177% 2.564 2.564 2.564 0.963 1.177 1.391 | Month 8 0.963% 2.564 1.605 | Month 9 0.749% 2.564 1.819 Month 10 | Month 11 | Month 12 0.535% 0.321% 0.107% 2.564 2.564 2.564 2.033 2.247 2.461 1 Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date January 25 July 25 April 22 Original Basis $ 90,000 95,000 220,000 Assume its taxable income for the year was $53,000 for purposes of computing the $179 expense (assume no bonus depreciation) (Use MACRS Table 1. Table 2, Table 3, Table 4 and Table 5:) (Leave no answer blank. Enter zero if applicable.) a. What is the maximum amount of $179 expense Dain's may deduct for the year? $179 expense Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date January 25 July 25 April 22 Original Basis $ 90,000 95,000 220,000 Assume its taxable income for the year was $53,000 for purposes of computing the $179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2. Table 3, Table 4 and Table 5.) (Leave no answer blank. Enter zero if applicable.) b. What is Dain's maximum depreciation deduction for the year (including $179 expense)? (Round your intermediate calculations to the nearest whole dollar amount.) Depreciation expense (including $179 expense) Table 1 MACRS Half-Year Convention 3-Year 33.33% 44.45 14.81 7.41 T 9.50 L Depreciation Rate for Recovery Period 5-Year 7-Year 10-Year 15-Year 20-Year 20,00% 14.29% 10.00% 5.00% 3.750% 32.00 24.49 18.00 17.219 19.20 17.49 14.40 8.55 6.677 11.52 12.49 11.52 7.706 .177 11.52 8.93 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285 8.93 6.55 | 5.90 4.888 4.46 6.55 5.90 4.522 6.56 5.91 4.462 6.55 4.461 5.91 4.462 5.90 4.461 5.91 4.462 5.90 4.461 4.462 2.95 4.461 4.462 4.461 4.462 4.461 2.231 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 15.90 3.28 001010**|*|*|*|*|********* 5.91 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 35.00% | 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year 8 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 L 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 3 3.34 TABLE 2 MACRS Mid-Quarter Convention: For property placed in service during the third quarter 1 20.40 Depreciation Rate for Recovery Period 5-Year 17-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 3 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter 38.00 Depreciation Rate for Recovery Period 5-Year 7-Year Yearl 5.00% 3.57% Year 2 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Year 8 7.64 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line27.5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 3 Month 6 Month 7 | Month 3 Month 9 Month 10 Month 11 Month 12 Year 1 3.485% 3.182% 2.879% 2.576% 2.273% 1.970% 1.667% 1.364% 1.061% 0.758% 0.455% 0.152% Year 2-9 3.6363.6363.6363.6363.636 3.6363 .636 3.6363 .636 3.636 3.636 | 3.636 Year 103.637 3.637 3.637 3.6371 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 11 3.636 | 3.6363.636 3.636 | 3.6363.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 12 3.637 3.637 3.637 3.637 3.637 3.637 3.6363.6363.6363.636 3.636 3.636 Year 13 3.636 3.636 | 3.636 3 .636 3.636 | 3.636 3.637 3 .637 3.637 3.637 3.637 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.6363.6363.6363.6363.636 3.636 Year 15 3.636 3.636 3.636 | 3.636 | 3.636 3 .636 3.637 3.637 3.637 3.637 3.637 | 3.637 Year 163 .6373.6373.637 3.6373.637 3.637 3.6363.6363.6363.6363.6363.636 Year 17 3.636 3.6363.6363.6363.6363.6363.637 3.637 3.637 3.637 3.637 3.637 Year 18 3.6373.6373.637 3.6373.637 3.637 3.636 3.6363.6363.6363.6363.636 Year 19 3.636 3.636 3 .636 3.636 3.636 3.636 | 3.637 3 .637 3.637 3.637 3.637 3.637 Year 20 3.637 3.6373 .6373 .637 3.637 3.637 3.636 3.6363 .636 3.636 3.636 3.636 Year 21 13.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 22 3.637 3.637 3.637 3.637 3.637 3.637 3.6363.6363.6363.636 3.636 3.636 Year 23 3.636 3.6363.6363.6363.6363.636 3.637 3.6373.6373.637 3.637 3.637 Year 24 13.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.6363.6363.636 3.636 Year 25 3.636 | 3.6363.636 3.636 | 3.6363.636 3.637 3.637 3.6373.637 3.6373.637 Year 26 3.637 3.637 3.637 3.637 3.637 3.637 3.6363.6363.6363.636 3.636 3.636 Year 27 3.6363.6363.6363.6363.6363.636 3.637 3.637 3.6373.637 3.6373.637 Year 28 1.97 2.273 2.576 2.879 3.182 3.485 3.6363.636 3.6363.6363.6363.636 Year 29 0.152 0.455 0.758 1.061 1.364 1.667 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line31.5 Years (for assets placed in service before May 13, 1993) L L Year 2-7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Month 1 3.042% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Month 4 2.249% 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3 175 Month 9 0.926% 3.175 3.175 3.174 3.175 3.174 3.175 Month 11 0.397% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Month 12 0.132% 3.175 L 3.175 3.175 3.174 3.175 L 3.174 TL 3.175 3.174 3.175 L L 3.174 L Year 163.175 3.175 L 3.175 3.174 1 L T 3.174 Month 2 2.778% 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 1.984 Month 3 2.513% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 2.249 3.175 3.174 3.175 3.174 3.175 3.174 3.175 L Month Property Placed in Service Month 5 Month 6 Month 7 1.984% 1.720% 1.455% 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 L 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 L 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 2.778 3.042 3.175 0.132 1 Month 3 1.190% L 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.115 3.174 L 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 0.397 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Year 31 Year 32 Year 33 L TL 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1.720 3.174 Month 10 0.661% 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 0.926 L | L 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 2.513 1 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 1.190 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1.455 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 0.661 3.10 L L TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line39 Years (for assets placed in service on or after May 13, 1993) Yearl Year 2-39 Year 40 Month 1 2.461% 2.564 0.107 Month 2 2.247% 2.564 0.321 Month 3 2.033% 2.564 0.535 Month 4 1.819% 2.564 0.749 Month Property Placed in Service | Month 5 | Month 6 Month 7 1.605% 1.391% 1.177% 2.564 2.564 2.564 0.963 1.177 1.391 | Month 8 0.963% 2.564 1.605 | Month 9 0.749% 2.564 1.819 Month 10 | Month 11 | Month 12 0.535% 0.321% 0.107% 2.564 2.564 2.564 2.033 2.247 2.461 1