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Dain's Diamond Bit Drilling purchased the following assets this year. Asset Purchase Date Original...

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Accounting

Dain's Diamond Bit Drilling purchased the following assets this year.
Asset Purchase Date Original Basis
Drill bits (5-year) March 28 $ 90,300
Drill bits (5-year) August 1895,300
Commercial building June 02226,000
Assume its taxable income for the year was $56,000 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?
b. What is Dain's maximum depreciation deduction for the year (including 179 expense)
c. If the January drill bits' original basis was $2,878,000, what is the maximum amount of 179 expense Dain's may deduct for the year?
d. If the January drill bits' original basis was $3,878,000, what is the maximum amount of 179 expense Dain's may deduct for the year?
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