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 Asset Cost Date Placed in Service Office furniture $ 150,000 02 03 2017 Machinery 1,560,000 07 22 2017 Used delivery truck 40,000 08 17 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 Asset Cost Date Placed in Service Computers info system $ 400,000 03 31 2018 Luxury auto 80,000 05 26 2018 Assembly equipment 1,200,000 08 15 2018 Storage building 700,000 11 13 2018 Used 100 for business purposes Karane generated taxable income in 2018 of $1,732,500 for purposes of computing the 179 expense (Use MACRS Table 1, Table 2, Table 3, Table 4, Table 5, and Exhibit 10 10 ) Assume the 2017 179 limits are the same as those in 2018 (Leave no answer blank Enter zero if applicable Input all the values as positive numbers ) rev 09 14 2018 QC CS 135704 a Compute the maximum 2017 depreciation deductions including 179 expense (ignoring bonus depreciation) Current MACRS Total Depreciation Deduction Description Cost $179 Expense MACRS Basis Depreciation Office furniture 2$ 150,000 $ $ 150,000 $ Machinery 1,560,000 1,000,000 560,000 1,000,000 Delivery truck 40,000 40,000 Totals $ 1,750,000 $ 1,000,000 $ 750,000 $

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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

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:

Asset	Cost		Date Placed in Service
Office furniture	$	150,000	02/03/2017
Machinery		1,560,000	07/22/2017
Used delivery truck*		40,000	08/17/2017

*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:

Asset	Cost		Date Placed in Service
Computers & info. system	$	400,000	03/31/2018
Luxury auto†		80,000	05/26/2018
Assembly equipment		1,200,000	08/15/2018
Storage building		700,000	11/13/2018

†Used 100% for business purposes.

Karane generated taxable income in 2018 of $1,732,500 for purposes of computing the §179 expense. (Use MACRS Table 1, Table 2, Table 3, Table 4, Table 5, and Exhibit 10-10.) Assume the 2017 §179 limits are the same as those in 2018. (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.)

rev: 09_14_2018_QC_CS-135704

a. Compute the maximum 2017 depreciation deductions including §179 expense (ignoring bonus depreciation).

Current Total Description Cost S179 Expense MACRS Basis MACRS Depreciation Deduction Depreciation Office furniture150,000 Machinery Delivery truck Totals 150,000 560,000 40,000 0) 1,000,000 0) 1,560,000 40,000 1,000,000 $ 1,750,000 $ 1,000,000$ 750,000$ 0

Current MACRS Total Depreciation Deduction Description Cost $179 Expense MACRS Basis Depreciation Office furniture 2$ 150,000 $ $ 150,000 $ Machinery 1,560,000 1,000,000 560,000 1,000,000 Delivery truck 40,000 40,000 Totals $ 1,750,000 $ 1,000,000 $ 750,000 $