Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (Static) [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 Cost $ 150,000 1,560,000 Service: 02/03/2020 07/22/2020 Used delivery truck 40,000 08/17/2020 "Not considered a luxury automobile. During 2020, Karane was very successful (and had no 5179 limitations) and decided to acquire more assets in 2021 to increase its production capacity. These are the assets acquired during 2021 Asset Computers and information system Assembly equipment Luxury autof Storage building Date Placed in Service 03/31/2021 Cost $ 400,000 80,000 1,200,000 700,000 05/26/2021 08/15/2021 11/13/2021 tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1,732,500 for purposes of computing the 5179 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.) Recovery EXHIBIT 10-10 Automobile Depreciation Limits Year Placed in Service Year 2021* 2020 2019 2018 1 10,100** 10,100** 10,100** 10,000** 2 16,100 16,100 16,100 16,000 3 9,700 9,700 9,700 9,600 4 and after 5,760 5,760 5,760 5,760 *As of press date, the IRS had not released the 2021 limitations for automobiles, so throughout the chapter we use the **$8,000 additional depreciation is allowed when bonus depreciation is claimed [$168(k)(2)(F)]. Required: c. Compute the maximum 2021 depreciation deductions, including 5179 expense, but now assume that Karane would like to take bonus depreciation Answer is complete but not entirely correct. Description Cost Section 179 Expense Bonus MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 2020 Assets Office Furniture $ 150,000 $ 0 $ 150,000 $ 21,435 S 21,435 Machinery 1,560,000 00 00 710,000 173,879 173,879 Used Delivery Truck 40,000 0 00 40,000 8,000 8,000 2021 Assets Computers and Information System 400,000 00 400,000 00 400,000 Luxury Auto 80,000 00 8,000 72,000 0 8,000 Assembly Equipment 1,200,000 12,000 12,000 0 00 24,000 Storage Building 700,000 7,000* 7,000 700,000 00 7,000 Total $ 4,130,000 19,000 $427,000 $ 1,672,000 S 203,314 $ 642,314