Required informationSkip to question [The following information applies to the questions displayed below.]Dain's Diamond Bit Drilling purchased the following assets this year.AssetPurchase DateOriginal BasisDrill bits (5-year)January 25$ 90,000Drill bits (5-year)July 2595,000Commercial buildingApril 22220,000Assume 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?

Businesses can deduct the cost of specified property as an instant expense rather than spreading it…

Answered: d. If the January drill bits' original…

Individual Income Taxes

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Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

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Problem 2CPA: Cox Construction, a company in its 10th year of business, purchased a piece of equipment on April 1,...

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[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?

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