[The following information applies to the questions displayed below.]

Dains Diamond Bit Drilling purchased the following assets this year.

	Purchase	Original
Asset	Date	Basis
Drill bits (5-year)	Jan-08	$	90,500
Drill bits (5-year)	Jul-15		98,500
Commercial building	Apr-13		286,000

Assume its taxable income for the year was $64,250 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.)

c. If the January drill bits original basis was $2,596,000, what is the maximum amount of 179 expense Dain's may deduct for the year?