[The following information applies to the questions displayed below.] Dains Diamond Bit Drilling...
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Accounting
[The following information applies to the questions displayed below.]
Dains Diamond Bit Drilling purchased the following assets this year.
Purchase
Original
Asset
Date
Basis
Drill bits (5-year)
Jan-08
$
90,500
Drill bits (5-year)
Jul-15
98,500
Commercial building
Apr-13
286,000
Assume its taxable income for the year was $64,250 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 $2,596,000, what is the maximum amount of 179 expense Dain's may deduct for the year?
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