What is dain maximum depreciation expense for the year

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Reference no: EM132066386

[The following information applies to the questions displayed below.] Dain’s Diamond Bit Drilling purchased the following assets this year. Purchase Original Asset Date Basis Drill bits (5-year) Mar-08 $ 102,000 Drill bits (5-year) Jul-11 112,750 Commercial building Jun-15 224,000 Assume its taxable income for the year was $72,500 for purposes of computing the §179 expense (assume no bonus depreciation). (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. Leave no answer blank. Enter zero if applicable.)

a. What is the maximum amount of §179 expense Dain may deduct for the year?

b. What is Dain’s maximum depreciation expense for the year (including §179 expense)?

c. If the March drill bits’ original basis was $2,409,500, what is the maximum amount of §179 expense Dain may deduct for the year?

d. If the March drill bits’ basis was $2,529,500, what is the maximum amount of §179 expense Dain may deduct for the year?

Reference no: EM132066386

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