Dain's Diamond Bit Drilling purchased the following assets this year.AssetPurchaseDateOriginalBasisDrill bits (5-January$90,000year)25Drill bits (5-July 2595,000year)Commercialbuilding220,000April 22Assume its taxable income for the year was $53,000 before deducting any $179expense (assume no bonus depreciation but assume that the 2014 $179 limits areextended to 2015). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Donot round intermediate calculations. Round your final answers to the nearestwhole dollar amount.)a.What is Dain's maximum §179 expense for the year?b.What is Dain's maximum depreciation expense for the year (including §179expense)?C.If the January drill bits' original basis was $2,375,000, what is Dain's maximum§179 expense for the year?d.If the January drill bits' basis was $2,495,000, what is Dain's maximum §179expense for the year?(Leave no answer blank. Enter zero if applicable.)

a. Dain’s Maximum §179 Expenses for the Year:The maximum §179 expense is limited to the taxable…

a. What is Dain's maximum §179 expense for the year? b. What is Dain's maximum depreciation expense for the year (including §179 expense)? If the January drill bits' original basis was $2,375,000, what is Dain's maximum §179 expense for the year? If the January drill bits' basis was $2,495,000, what is Dain's maximum §179

a. What is Dain's maximum §179 expense for the year? b. What is Dain's maximum depreciation expense for the year (including §179 expense)? If the January drill bits' original basis was $2,375,000, what is Dain's maximum §179 expense for the year? If the January drill bits' basis was $2,495,000, what is Dain's maximum §179

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Q7.
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An asset is placed in service on May 15, 2020 and has a depreciable basis of $40,000. The asset is in the 7-year recovery class and the half-year convention applies. What is the maximum depreciation deduction that may be claimed for 2020, assuming no election to expense and no bonus depreciation? a. $5,144 b. $5,716 c. $25,000 d. $2,572 e. None of these choices are correct.
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yes but we bought the asset on 1.7.2021 so the depreciation will not be for the full year. correct?
The Allowable Business Investment Loss is __________ of the realized Business Investment Loss in a given year. Question 2 options: a) Same amount b) One-third c) One-half d) One-fifth