Dain's Diamond Bit Drilling purchased the following assets this year. Assume its taxable income for the year was $53,000 before deducting any §179 expense (assume no bonus depreciation but assume that the 2014 §179 limits are extended to 2015).

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

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Purchase Date Original Basis Asset January 25 July 25 April 22 Drill bits (5-year) Drill bits (5-year) Commercial building $ 90,000 220,000