Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date Mar-03 Jul-17 May-26 Problem 10-59 Part d (Algo) Assume its taxable income for the year was $61,000 for purposes of computing the §179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Note: Leave no answer blank. Enter zero if applicable. Maximum §179 expense Original Basis $ 90,800 95,800 236,000 d. If the January drill bits' original basis was $4,283,000, what is the maximum amount of §179 expense Dain's may deduct for the year? $ 3,426,400
Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date Mar-03 Jul-17 May-26 Problem 10-59 Part d (Algo) Assume its taxable income for the year was $61,000 for purposes of computing the §179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Note: Leave no answer blank. Enter zero if applicable. Maximum §179 expense Original Basis $ 90,800 95,800 236,000 d. If the January drill bits' original basis was $4,283,000, what is the maximum amount of §179 expense Dain's may deduct for the year? $ 3,426,400
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 10RE: Assume the same information as in RE11-3, except that Albany Corporation purchased the asset on...
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![Dain's Diamond Bit Drilling purchased the following assets this year.
Asset
Drill bits (5-year)
Drill bits (5-year)
Commercial building
Purchase Date
Mar-03
Jul-17
May-26
Problem 10-59 Part d (Algo)
Assume its taxable income for the year was $61,000 for purposes of computing the §179 expense (assume no bonus
depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.)
Note: Leave no answer blank. Enter zero if applicable.
Maximum §179 expense
Original
Basis
$ 90,800
95,800
236,000
d. If the January drill bits' original basis was $4,283,000, what is the maximum amount of §179 expense Dain's may deduct for the year?
$ 3,426,400 x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f6f4d9e-8977-4487-b242-ee8b12b51b57%2F45edcacb-9061-4034-8929-3291ff4988fc%2Fhmvr2qk_processed.png&w=3840&q=75)
Transcribed Image Text:Dain's Diamond Bit Drilling purchased the following assets this year.
Asset
Drill bits (5-year)
Drill bits (5-year)
Commercial building
Purchase Date
Mar-03
Jul-17
May-26
Problem 10-59 Part d (Algo)
Assume its taxable income for the year was $61,000 for purposes of computing the §179 expense (assume no bonus
depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.)
Note: Leave no answer blank. Enter zero if applicable.
Maximum §179 expense
Original
Basis
$ 90,800
95,800
236,000
d. If the January drill bits' original basis was $4,283,000, what is the maximum amount of §179 expense Dain's may deduct for the year?
$ 3,426,400 x
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