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.)

What is Dain’s maximum depreciation deduction for the year (including §179 expense)? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Answer rating: 100% (QA)

Dains maximum deprecation deduction which includes the Section 179 expense must be ascertained To do this first determine the depreciation of each ass... View the full answer