Dain's Diamond Bit Drilling purchased the following assets this year. Purchase Original Basis Asset Date Drill bits (5-year) Drill bits (5-year) Commercial building January 25 July 25 April 22 $ 115,000 118,500 299,000 Assume its taxable income for the year was $76,500 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 and final answer to the nearest whole dollar amount.) Depreciation Deduction (including $179 expense)
Dain's Diamond Bit Drilling purchased the following assets this year. Purchase Original Basis Asset Date Drill bits (5-year) Drill bits (5-year) Commercial building January 25 July 25 April 22 $ 115,000 118,500 299,000 Assume its taxable income for the year was $76,500 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 and final answer to the nearest whole dollar amount.) Depreciation Deduction (including $179 expense)
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 2BCRQ
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Transcribed Image Text:Dain's Diamond Bit Drilling purchased the following assets this year.
Original
Basis
$ 115,000
118,500
299,000
Purchase
Asset
Date
Drill bits (5-year)
Drill bits (5-year)
January 25
July 25
April 22
Commercial building
Assume its taxable income for the year was $76,500 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 and
final answer to the nearest whole dollar amount.)
Depreciation Deduction (including §179 expense)
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