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.PurchaseOriginalAssetDateBasisDrill bits (5-year)Drill bits (5-year)Commercial buildingJanuary 25July 25April 22$ 88,500101,250251,000Assume its taxable income for the year was $60,000 for purposes of computing the §179 expense (assume no bonusdepreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Leave no answer blank. Enter zero ifapplicable.)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?

Original basis refers to the amount of actual cost of the asset. At the time of sale of asset,…

Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Original Basis $ 88,500 101,250 251,000 Purchase Asset Date Drill bits (5-year) Drill bits (5-year) Commercial building January 25 July 25 April 22 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?

Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Original Basis $ 88,500 101,250 251,000 Purchase Asset Date Drill bits (5-year) Drill bits (5-year) Commercial building January 25 July 25 April 22 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?

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

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

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