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 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

Use this information to answer the following 6 questions. Madison Company acquired a depreciable asset at the beginning of Year 1 at a cost of $12 million. At December 31, Year 1, Madison gathered the following information related to this asset:   Carrying value of the asset at 12/31/Y1                                      $10 million Fair value of the asset at 12/31/Y1                                              $7.5 million Sum of expected future cash flows at 12/31/Y1                          $10 million Present value of expected future cash flows at 12/31/Y1            $8 million Remaining useful life at 12/31/Y1                                               5 years     Determine the impact on Year 1 net income from depreciation and possible impairment under IFRS.

[The following information applies to the questions displayed below.]   Dog Co. acquired and placed in service the following assets during the year:      Date Cost Asset Placed in Service Basis Computer equipment 3/9 $ 15,800 Furniture 5/23   23,200 Commercial building 10/19   347,000     Assuming Dog Co. does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)     b. What is Dog Co.'s year 3 cost recovery for each asset if Dog Co. sells all of these assets on 4/16 of year 3?