Dain’s Diamond Bit Drilling purchased the following assets this year. Purchase Original Asset Date 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.) (Leave no answer blank. Enter zero if applicable.) Q: If the January drill bits’ original basis was $3,875,000, 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. Purchase Original Asset Date 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.) (Leave no answer blank. Enter zero if applicable.) Q: If the January drill bits’ original basis was $3,875,000, what is the maximum amount of §179 expense Dain's may deduct for the year?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 6BCRQ
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Dain’s Diamond Bit Drilling purchased the following assets this year.
| Purchase | Original | ||
| Asset | Date | 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
Q: If the January drill bits’ original basis was $3,875,000, what is the maximum amount of §179 expense Dain's may deduct for the year?
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