What is the maximum amount of expense dain may deduct

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Reference no: EM132220882

Question - Dain's Diamond Bit Drilling purchased the following assets this year.

Asset	Purchase Date	Original Basis
Drill bits (5-year)	Jan-24	$109,000
Drill bits (5-year)	Aug-07	121,500
Commercial building	June-17	263,000

Assume its taxable income for the year was $54,000 for purposes of computing the 179 expense (assume no bonus depreciation).

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

Reference no: EM132220882

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