Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5)

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

Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2019. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019:

Asset	Cost		Date Placed in Service
Office furniture	$	150,000	02/03/2019
Machinery		1,560,000	07/22/2019
Used delivery truck*		40,000	08/17/2019

*Not considered a luxury automobile.

During 2019, Karane was very successful (and had no 179 limitations) and decided to acquire more assets in 2020 to increase its production capacity. These are the assets acquired during 2020:

Asset	Cost		Date Placed in Service
Computers & info. system	$	400,000	03/31/2020
Luxury auto		80,000	05/26/2020
Assembly equipment		1,200,000	08/15/2020
Storage building		700,000	11/13/2020

Used 100% for business purposes.

Karane generated taxable income in 2020 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.)

b. Compute the maximum 2020 depreciation deductions, including 179 expense (ignoring bonus depreciation).

b. Compute the maximum 2020 depreciation deductions, including 179 expense (ignoring bonus depreciation).

e. Complete Karane Enterprises's Form 4562 for part (b).