Check my work!Required information[The following information applies to the questions displayed below.]Dain's Diamond Bit Drilling purchased the following assets this year.PurchaseOriginalAssetDateBasisDrill bits (5-year)Drill bits (5-year)Commercial buildingJanuary 25July 25April 22$ 88,500101,250251,000Assume its taxable income for the year was $60,000 for purposes of computing the §179 expense (assume no bonusdepreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Leave no answer blank. Enter zero ifapplicable.)c. If the January drill bits' original basis was $2,514,000, what is the maximum amount of §179 expense Dain's may deduct for the year?

Original basis refers to the amount of actual cost of the asset. At the time of sale of asset,…

Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Original Basis $ 88,500 101,250 251,000 Purchase Asset Date Drill bits (5-year) Drill bits (5-year) Commercial building January 25 July 25 April 22 Assume its taxable income for the year was $60,000 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.) c. If the January drill bits’ original basis was $2,514,000, what is the maximum amount of §179 expense Dain's may deduct for the year?

Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Original Basis $ 88,500 101,250 251,000 Purchase Asset Date Drill bits (5-year) Drill bits (5-year) Commercial building January 25 July 25 April 22 Assume its taxable income for the year was $60,000 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.) c. If the January drill bits’ original basis was $2,514,000, what is the maximum amount of §179 expense Dain's may deduct for the year?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 2BCRQ

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