Dains Diamond Bit Drilling purchased the following assets this year. Purchase Original Asset Date Basis Drill bits
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Question:
Dain’s Diamond Bit Drilling purchased the following assets this year.
Purchase | Original | ||
Asset | Date | Basis | |
Drill bits (5-year) | Jan-13 | $ | 130,500 |
Drill bits (5-year) | Sep-01 | 149,750 | |
Commercial building | May-27 | 234,000 | |
Assume its taxable income for the year was $61,500 for purposes of computing the §179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4and Table 5.) (Leave no answer blank. Enter zero if applicable.)
b. What is Dain’s maximum depreciation deduction for the year (including §179 expense)? (Round your intermediate calculations to the nearest whole dollar amount
Related Book For
Essentials Of Federal Taxation 2019
ISBN: 9781260190045
10th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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