Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2017. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2017:

*Not considered a luxury automobile. During 2017, Karane was very successful (and had no §179 limitations) and decided to acquire more assets this next year to increase its production capacity. These are the assets acquired during 2018:

€ Used 100% for business purposes. Karane generated taxable income in 2018 of $1,732,500 for purposes of computing the §179 expense.
Required
a. Compute the maximum 2017 depreciation deductions including §179 expense (ignoring bonus depreciation).
b. Compute the maximum 2018 depreciation deductions including §179 expense (ignoring bonus depreciation).
c. Compute the maximum 2018 depreciation deductions including §179 expense, but now assume that Karane would like to take bonus depreciation. 

d. Now assume that during 2018, Karane decides to buy a competitor€™s assets for a purchase price of $1,350,000.
Compute the maximum 2018 cost recovery including §179 expense and bonus depreciation. Karane purchased the following assets for the lump-sum
purchase price.

e. Complete Part I of Form 4562 for part (b) (use the most current form available).

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Date Placed in Service Asset Cost Office furniture $ 150,000 1,560,000 40,000 02/03/2017 07/22/2017 Machinery Used delivery truck 08/17/2017 Date Placed in Service 03/31/2018 05/26/2018 08/15/2018 11/13/2018 Asset Cost $ 400,000 Computers & info. system Luxury auto' Assembly equipment Storage building 80,000 1,200,000 700,000