Dain's Diamond Bit Drilling purchased the following assets this year.AssetPurchaseDateOriginalBasisDrill bits (5-January$90,000year)25Drill bits (5-July 2595,000year)Commercialbuilding220,000April 22Assume its taxable income for the year was $53,000 before deducting any $179expense (assume no bonus depreciation but assume that the 2014 $179 limits areextended to 2015). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Donot round intermediate calculations. Round your final answers to the nearestwhole dollar amount.)a.What is Dain's maximum §179 expense for the year?b.What is Dain's maximum depreciation expense for the year (including §179expense)?C.If the January drill bits' original basis was $2,375,000, what is Dain's maximum§179 expense for the year?d.If the January drill bits' basis was $2,495,000, what is Dain's maximum §179expense for the year?(Leave no answer blank. Enter zero if applicable.)

a. Dain’s Maximum §179 Expenses for the Year:The maximum §179 expense is limited to the taxable…

a. What is Dain's maximum §179 expense for the year? b. What is Dain's maximum depreciation expense for the year (including §179 expense)? If the January drill bits' original basis was $2,375,000, what is Dain's maximum §179 expense for the year? If the January drill bits' basis was $2,495,000, what is Dain's maximum §179

a. What is Dain's maximum §179 expense for the year? b. What is Dain's maximum depreciation expense for the year (including §179 expense)? If the January drill bits' original basis was $2,375,000, what is Dain's maximum §179 expense for the year? If the January drill bits' basis was $2,495,000, what is Dain's maximum §179

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 7RE: Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of...

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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 Purchase Date January 25 Original Basis $ 90,000 July 25 95,000 April 22 220,000 Assume its taxable income for the year was $53,000 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? §179 expense
Required information Skip to question [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Asset Purchase Date Original Basis Drill bits (5-year) January 25 $ 90,000 Drill bits (5-year) July 25 95,000 Commercial building April 22 220,000 Assume its taxable income for the year was $53,000 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. d. If the January drill bits' original basis was $4,275,000, what is the maximum amount of §179 expense Dain's may deduct for the year?
Check my work ! Required information [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) Drill bits (5-year) Commercial building January 25 July 25 April 22 $ 88,500 101,250 251,000 Assume its taxable income for the year was $60,000 for purposes of computing the §179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Leave no answer blank. Enter zero if applicable.) c. If the January drill bits' original basis was $2,514,000, what is the maximum amount of §179 expense Dain's may deduct for the year?
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