Below is a list of assets acquired during 2021:

Asset	Cost	Date Placed in Service
Office furniture	$ 200,000	02/03/2021
Machinery	1,570,000	07/22/2021
Used delivery truck*	50,000	08/17/2021

*Not considered a luxury automobile.

During 2021, Karane was very successful (and had no 179 limitations) and decided to acquire more assets in 2022 to increase its production capacity. These are the assets acquired during 2022:

Asset	Cost	Date Placed in Service
Computers and information system	$ 410,000	03/31/2022
Luxury auto*	82,500	05/26/2022
Assembly equipment	1,250,000	08/15/2022
Storage building	900,000	11/13/2022

*Used 100% for business purposes.

Karane generated taxable income in 2022 of $1,745,000 for purposes of computing the 179 expense limitation. (Use MACRS Table 1, Table 2, Table 3, Table 4, Table 5, and Exhibit 10-10.)

Comprehensive Problem 10-76 Part a (Algo)

Required:

Compute the maximum 2021 depreciation deductions, including 179 expense (ignoring bonus depreciation).

Description	Cost ($)	Sec.179 Expenses	Marcs basis	Current MARCS Expenses	Total Expenses
Office Furniture	200000	0	200000	?	?
Machinery	1,570,000	?	?	?	?
Used Delivery Truck	50,000	0	50000	?	?
Total	?	?	?	?	?
Computers & info system	40,000	40,000	7,500	1,500	34,000
Luxury auto	80,000	-	72,000	3,160	11,160
Assembly equipment	1,200,000	1,200,000	-	-	1,200,000
Storage building	700,000	-	700,000	2,247	2,247
Total	3,770,000	500,000	989,500	59,463	1,299,963