Dain’s Diamond Bit Drilling purchased the following assets this year. Assume its
ID: 2426541 • Letter: D
Question
Dain’s Diamond Bit Drilling purchased the following assets this year.
Assume its taxable income for the year was $58,500 before deducting any §179 expense (assume no bonus depreciation but assume that the 2014 §179 limits are extended to 2015). (Use MACRS Table 1, Table 2,Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)
What is the maximum amount of §179 expense Dain may deduct for the year?
What is Dain’s maximum depreciation expense for the year (including §179 expense)?
If the January drill bits’ original basis was $2,397,500, what is the maximum amount of §179 expense for the year? Dain may deduct for the year?
If the January drill bits’ basis was $2,517,500, what is Dain’s maximum §179 expense for the year?(Leave no answer blank. Enter zero if applicable.)
Dain’s Diamond Bit Drilling purchased the following assets this year.
Explanation / Answer
a.
As per section 179 depreciation maximum expense upto $25000 is allowed , if purhcase of assets worth exceeds $200000 during the year
total Assets purchased = 120500 +139750 + 313000
= 573250
, maximum amount of depreciaiton = $25000
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