Dain€™s Diamond Bit Drilling purchased the following assets this year. Assume its taxable income for the year was $53,000 for purposes of computing the
§179 expense (assume no bonus depreciation).

a. What is the maximum amount of §179 expense Dain may deduct for the year? 

b. What is Dain€™s maximum depreciation deduction for the year (including §179 expense)?
c. If the January drill bits€™ original basis was $2,875,000, what is the maximum amount of §179 expense Dain may deduct for the year?
d. If the January drill bits€™ original basis was $3,875,000, what is the maximum amount of §179 expense Dain may deduct for the year?

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Purchase Date Original Basis $ 90,000 Asset Drill bits (5-year) bits (5-year) Commercial building January 25 July 25 April 22 95,000 220,000