! Required information [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) Jan-29 $ 91,000 Drill bits (5-year) Aug-11 Jun-11 96,000 240,000 Commercial building Assume its taxable income for the year was $63,000 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. b. What is Dain's maximum depreciation deduction for the year (including $179 expense)? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Depreciation Deduction (including $179 expense)
! Required information [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) Jan-29 $ 91,000 Drill bits (5-year) Aug-11 Jun-11 96,000 240,000 Commercial building Assume its taxable income for the year was $63,000 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. b. What is Dain's maximum depreciation deduction for the year (including $179 expense)? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Depreciation Deduction (including $179 expense)
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 51P
Related questions
Question
Gadubhi
![!
Required information
[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)
Jan-29
$ 91,000
Drill bits (5-year)
Aug-11
Jun-11
96,000
240,000
Commercial building
Assume its taxable income for the year was $63,000 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.
b. What is Dain's maximum depreciation deduction for the year (including $179 expense)?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
Depreciation Deduction (including $179 expense)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc3a0cc9-5a42-4c3f-ad4a-a8e8059af464%2F9fec3ce2-242d-4c6f-8101-507e65ce04e8%2F977bzl4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[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)
Jan-29
$ 91,000
Drill bits (5-year)
Aug-11
Jun-11
96,000
240,000
Commercial building
Assume its taxable income for the year was $63,000 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.
b. What is Dain's maximum depreciation deduction for the year (including $179 expense)?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
Depreciation Deduction (including $179 expense)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning