d. If the January drill bits' original basis was $4,275,000, what is the maximum amount of §179 expense Dain's may deduct for the year?
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[The following information applies to the questions displayed below.]
Dain's Diamond Bit Drilling purchased the following assets this year.
| Asset | Purchase Date | Original Basis |
|---|---|---|
| Drill bits (5-year) | January 25 | $ 90,000 |
| Drill bits (5-year) | July 25 | 95,000 |
| Commercial building | April 22 | 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.)
Note: Leave no answer blank. Enter zero if applicable.
d. If the January drill bits' original basis was $4,275,000, what is the maximum amount of §179 expense Dain's may deduct for the year?
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- Turnip Company purchased an asset at a cost of 10,000 with a 10-year life during the current year. Turnip uses differing depreciation methods for financial reporting and income tax purposes. The depreciation expense during the current year for financial reporting is 1,000 and for income tax purposes is 2,000. Turnip is subject to a 30% enacted future tax rate. Prepare a schedule to compute Turnips (a) ending future taxable amount, (b) ending deferred tax liability, and (c) change in deferred tax liability (deferred tax expense) for the current year.Assume the same information as in RE11-3, except that Albany Corporation purchased the asset on April 1, Year 1. Calculate the depreciation for Year 1 and Year 2 using the double-declining-balance method. Round to the nearest dollar.Dain's Diamond Bit Drilling purchased the following assets this year. Purchase Original Asset Date Drill bits (5-year) January 25 $ Drill bits (5-year) July 25 Commercial building April 22 Basis 102,500 113,250 266,000 Assume its taxable income for the year was $55,250 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 $2,491,500, 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. Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date January 29 August 11 June 11 Original Basis $ 91,000 96,000 240,000 Assume its taxable income for the year was $63,000 for purposes of computing the $179 expense (assume no bonus depreciation). (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5.) Note: Leave no answer blank. Enter zero if applicable. b. What is Dain's maximum depreciation deduction for the year (including §179 expense)? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Depreciation Deduction (including $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 Original Basis $ 91,700 Purchase Date 25-Jan 25-Jul 96,700 254,000 22-Apr Assume its taxable income for the year was $70,000 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 and final answer to the nearest whole dollar amount.) Depreciation Deduction (including $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 Original Basis $ 90,000 July 25 95,000 April 22 220,000 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.) Note: 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
- Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date Mar-03 Jul-17 May-26 Problem 10-59 Part d (Algo) Assume its taxable income for the year was $61,000 for purposes of computing the §179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Note: Leave no answer blank. Enter zero if applicable. Maximum §179 expense Original Basis $ 90,800 95,800 236,000 d. If the January drill bits' original basis was $4,283,000, what is the maximum amount of §179 expense Dain's may deduct for the year? $ 3,426,400 xAssume that ACW Corporation has 2022 taxable income of $1,520,000 for purposes of computing the §179 expense. The company acquired the following assets during 2022 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.) Asset Machinery Computer equipment Delivery truck 10-February 21-August Placed in Service 12-September Basis $ 472,000 72,000 Qualified real property (MACRS, 15 year, 150% DB) 2-April Total 95,000 1,382,000 $ 2,021,000 a. What is the maximum amount of §179 expense ACW may deduct for 2022? b. What is the maximum total depreciation that ACW may deduct in 2022 on the assets it placed in service in 2022? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2022 b. Maximum total deductible depreciation for 2022Assume that ACW Corporation has 2022 taxable income of $1,960,000 for purposes of computing the §179 expense. The company acquired the following assets during 2022 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.) Asset Placed in Service Machinery 12-September Basis $ 516,000 Computer equipment Delivery truck 10-February 21-August 116,000 Qualified real property (MACRS, 15 year, 2-April 150% DB) Total 139,000 1,426,000 $ 2,197,000 a. What is the maximum amount of $179 expense ACW may deduct for 2022? b. What is the maximum total depreciation that ACW may deduct in 2022 on the assets it placed in service in 2022? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2022 b. Maximum total deductible depreciation for 2022
- 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)Assume that ACW Corporation has 2023 taxable income of $1,940,000 for purposes of computing the §179 expense. The company acquired the following assets during 2023 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.) Asset Machinery Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total Placed in Service 12-September 10-February 21-August 02-April a. What is the maximum amount of §179 expense ACW may deduct for 2023? a. Maximum §179 expense for 2023 b. Maximum total deductible depreciation for 2023 Basis $ 514,000 114,000 137,000 1,424,000 $ 2,189,000 b. What is the maximum total depreciation that ACW may deduct in 2023 on the assets it placed in service in 2023? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.Assume that ACW Corporation has 2023 taxable income of $1,820,000 for purposes of computing the §179 expense. The company acquired the following assets during 2023 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.) Placed in Service 12-September 10-February Delivery truck 21-August Qualified real property (MACRS, 15 year, 02-April 150% DB) Total Asset Machinery Computer equipment a. What is the maximum amount of $179 expense ACW may deduct for 2023? b. What is the maximum total depreciation that ACW may deduct in 2023 on the assets it placed in service in 2023? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2023 b. Maximum total deductible depreciation for 2023 Basis $ 502,000 102,000 125,000 1,412,000 $ 2,141,000 $ $ 1,160,000 1,304,408 X
