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c. Compute the maximum 2021 depreciation deductions, including 91/9 expense, but now assume that Karane would like to take bonus depreciation. Description 2020 Assets Office
c. Compute the maximum 2021 depreciation deductions, including 91/9 expense, but now assume that Karane would like to take bonus depreciation. Description 2020 Assets Office Furniture Machinery Used Delivery Truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total Section 179 Cost Bonus MACRS Basis Expense Current MACRS Depreciation Total Cost Recovery Deduction $ FA $ 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 [The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2020. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2020: Date Placed in Asset Office furniture Machinery Used delivery truck* Cost $ 150,000 1,560,000 40,000 Service 02/03/2020 07/22/2020 08/17/2020 *Not considered a luxury automobile. During 2020, Karane was very successful (and had no 179 limitations) and decided to acquire more assets in 2021 to increase its production capacity. These are the assets acquired during 2021: Date Placed in Asset Cost Service Computers and information system $ 400,000 03/31/2021 Luxury autot 80,000 05/26/2021 Assembly equipment Storage building 1,200,000 700,000 08/15/2021 11/13/2021 +Used 100% for business purposes. Karane generated taxable income in 2021 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.) (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.)
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