Dain's Diamond Bit Drilling purchased the following assets this year.
Asset Purchase Date Original Basis
Drill bits year March $
Drill bits year August
Commercial building June
Assume its taxable income for the year was $ for purposes of computing the expense assume no bonus depreciationUse MACRS Table Table Table Table and Table
Note: Leave no answer blank. Enter zero if applicable.
a What is the maximum amount of expense Dain's may deduct for the year?
b What is Dain's maximum depreciation deduction for the year including expense
c If the January drill bits' original basis was $ what is the maximum amount of expense Dain's may deduct for the year?
d If the January drill bits' original basis was $ what is the maximum amount of expense Dain's may deduct for the year?
