Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building. Purchase Date Jan-29 Aug-11 Jun-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. c. If the January drill bits' original basis was $2,885,000, what is the maximum amount of §179 expense Dain's may deduct for the year?
Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building. Purchase Date Jan-29 Aug-11 Jun-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. c. If the January drill bits' original basis was $2,885,000, what is the maximum amount of §179 expense Dain's may deduct for the year?
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Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
Problem 1BD
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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
§179 expense
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.
GA
Purchase Date
Jan-29
Aug-11
Jun-11
c. If the January drill bits' original basis was $2,885,000, what is the maximum amount of §179 expense Dain's may
deduct for the year?
$
Original
Basis
148,706
$ 91,000
96,000
240,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3c028ad-204b-4c9d-b722-7ff5c8f32126%2Faf7475e4-78e7-4b03-b1b8-5fe225011d6d%2F16ieib7_processed.png&w=3840&q=75)
Transcribed Image Text:!
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
§179 expense
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.
GA
Purchase Date
Jan-29
Aug-11
Jun-11
c. If the January drill bits' original basis was $2,885,000, what is the maximum amount of §179 expense Dain's may
deduct for the year?
$
Original
Basis
148,706
$ 91,000
96,000
240,000
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