$36$

Required information

$[$The following information applies to the questions displayed below.$]$

Karane Enterprises, a calendar$-$year manufacturer based in College Station, Texas, began business in $2022.$ In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during $2022$:

$\backslash$table$[[,,$Date Placed in$],[$Asset$,$Cost,$\backslash$table$[[$Service$]]],[$Office furniture,$$150,000,02/03/2022],[$Machinery$,1,560,000,07/22/2022],[$Used delivery truck$*,40,000,08/17/2022]]$

$*$Not considered a luxury automobile.

During $2022,$ Karane was very successful $($and had no $$179$ limitations$)$ and decided to acquire more assets in $2023$ to increase its production capacity. These are the assets acquired during $2023$:

$\backslash$table$[[,,$Date Placed in$],[$Asset$,$Cost,Service$],[$Computers and information system,$$400,000,03/31/2023],[$Luxury auto$*,80,000,05/26/2023],[$Assembly equipment,$1,200,000,08/15/2023],[$Storage building,$700,000,11/13/2023]]$

$*$Used $100\%$ for business purposes.

Karane generated taxable income in $2023$ of $$1,732,500$ for purposes of computing the $$179$ expense limitation$.($Use MACRS Table $1,$ Table $2,$ Table $3,$ Table $4,$ Table $5,$ and Exhibit $10-10.)$

Note: Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.

Required:

d$.$ Now assume that during $2023,$ Karane decides to buy a competitor's assets for a purchase price of $$1,350,000.$ Compute the maximum $2023$ cost recovery, including $$179$ expense and bonus depreciation. Karane purchased the following assets for the lumpsum purchase price:

Note: Round your final answers to the nearest whole dollar amount.

$\backslash$table$[[,,$Date Placed in$],[$Asset$,$Cost,Service$],[$Inventory$,$$$220,000,09/15/2023],[$Office furniture,$230,000,09/15/2023],[$Machinery$,250,000,09/15/2023],[$Patent$,198,000,09/15/2023],[$Goodwill$,2,000,09/15/2023],[$Building$,430,000,09/15/2023],[$Land$,20,000,09/15/2023]]$

Assume that Karane takes the maximum section $179$ expense for the Assembly Equipment.

$\backslash$table$[[$Description$,$Cost,$\backslash$table$[[$Section $179],[$Expense$]],$Bonus,MACRS Basis,$\backslash$table$[[$Current$],[$MACRS$],[$Depreciation$]],\backslash$table$[[$Current$],[$Amortization$]],\backslash$table$[[$Total Cost$],[$Recovery$],[$Deduction$]]],[2022$ Assets$],[$Machinery$,,,,,,,0],[$Used Delivery Truck,,,,,,,$0],[2023$ Assets$],[$Luxury Auto,,,,,,,$0],[$Assembly Equipment,,,,,,,$0],[$Storage Building,,,,,,,$0],[$Inventory$,,,,,,,0],[$Office Furniture,,,,,,,$0],[$Land$,,,,,,,0],[$Totals$,$$$,$$$,$$$,0,$$$,$$$,$$$]]$