Dain's Diamond Bit Drilling purchased the following assets this year. Original Basis $ 90,400 95, 400 228,000 Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date February 13 August 25 May 22 Assume its taxable income for the year was $57,000 for purposes of computing the 5179 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 5179 expense)? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Depreciation Deduction (including 5179 expense)
Dain's Diamond Bit Drilling purchased the following assets this year. Original Basis $ 90,400 95, 400 228,000 Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date February 13 August 25 May 22 Assume its taxable income for the year was $57,000 for purposes of computing the 5179 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 5179 expense)? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Depreciation Deduction (including 5179 expense)
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11EB: The following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining...
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