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Problem 10-59 (LO 10-2, LO 10-3) (Algo)

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[The following information applies to the questions displayed below.]

Dains Diamond Bit Drilling purchased the following assets this year.

	Purchase	Original
Asset	Date	Basis
Drill bits (5-year)	January 25	$	120,500
Drill bits (5-year)	July 25		139,750
Commercial building	April 22		313,000

Assume its taxable income for the year was $58,500 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.)

Problem 10-59 Part c (Algo)

c. If the January drill bits original basis was $2,497,500, what is the maximum amount of 179 expense Dain's may deduct for the year?