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Can I get help with the correct answers please Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (Algo) [The following
Can I get help with the correct answers please
Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (Algo) [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: Asset office furniture Machinery Cost $ 310,000 1,592,000 72,000 Used delivery truck* *Not considered a luxury automobile. Asset Date Placed in Service 02/03/2020 07/22/2020 08/17/2020 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: Cost $ 432,000 88,000 Computers and information system Luxury autot Assembly equipment Storage building tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1,772,500 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.) 1,360,000 800,000 Date Placed in Service 03/31/2021 05/26/2021 08/15/2021 11/13/2021 Comprehensive Problem 10-76 Part c (Algo) Required: c. Compute the maximum 2021 depreciation deductions, including 179 expense, but now assume that Karane would like to take bonus depreciation. Storage building tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1,772,500 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.) Comprehensive Problem 10-76 Part c (Algo) Description Required: c. Compute the maximum 2021 depreciation deductions, including 179 expense, but now assume that Karane would like to take bonus depreciation. 2020 Assets Office Furniture Machinery Used Delivery Truck 2021 Assets 800,000 Computers and Information System Luxury Auto Assembly Equipment Storage Building Total Cost $ 310,000 $ 1,592,000 72,000 11/13/2021 Section 179 Expense Answer is not complete. 0 0 0 0 0 432,000 88,000 1,360,000 800,000 $ 4,654,000 $ 1,050,000 $ 750,000 Bonus 1,050,000 0 432,000 8,000 310,000 $ MACRS Basis 310,000 552,000 72,000 $ 934,000 Current MACRS Depreciation $ 0 Total Cost Recovery Deduction $ 0 0 0 432,000 8,000 1,360,000 0 $ 1,800,000 Required: d. Now assume that during 2021, Karane decides to buy a competitor's assets for a purchase price of $1,541,680. Compute the maximum 2021 cost recovery, including 179 expense and bonus depreciation. Karane purchased the following assets for the lump- sum purchase price: (Round your final answers to the nearest whole dollar amount.) Asset Cost $ 252,000 262,000 282,000 226,800 4,880 462,000 52,000 Assume that Karane takes the maximum section 179 expense for the Assembly Equipment. Inventory Office furniture Machinery Patent Goodwill Building Land Description 2020 Assets Office Furniture Machinery Used Delivery Truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Inventory Office Furniture Machinery Patent Goodwill Building Land Totals Date Placed in Service 09/15/2021 09/15/2021 09/15/2021 $ 09/15/2021 09/15/2021 09/15/2021 09/15/2021 Cost 310,000 1,592,000 72,000 Section 179 Expense Bonus 1,050,000 432,000 88,000 1,360,000 800,000 252,000 262,000 282,000 226,800 4,880 462,000 52,000 $ 6,195,680 $ 1,050,000 $ 1,294,000 $ 432,000 8,000 310,000 MACRS Basis 262,000 282,000 $ 310,000 552,000 72,000 80,000 800,000 462,000 Current MACRS Depreciation 2,276,000 $ Current Amortization 0 $ 0 Total Cost Recovery Deduction $ $ 0 0 0 432,000 8,000 1,360,000 0 0 262,000 282,000 0 0 0 0 2,344,000
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