Taxable Income Assignment – Top Universities
April 15th, 2021
Dain’s Diamond Bit Drilling purchased the following assets this year.
| Purchase | Original | ||
| Asset | Date | Basis | |
| Drill bits (5-year) | Jan-23 | $ | 125,500 |
| Drill bits (5-year) | Sep-21 | 130,750 | |
| Commercial building | May-17 | 319,000 | |
Assume its taxable income for the year was $57,750 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.)
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A. If the January drill bits’ original basis was $2,378,000, what is the maximum amount of §179 expense Dain may deduct for the year?
§179 expense———————–?
