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

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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 b (Algo)

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

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?

d. If the January drill bits original basis was $24,597,500, what is the maximum amount of 179 expense Dain's may deduct for the year?