I have a 5 part accounting question.

Required information [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: Date Placed in Asset Cost Service Office furniture $ 150,000 02/03/2019 Machinery 1,560,000 07/22/2019 Used delivery truck* 40,000 08/17/2019 I '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: Date Placed in Asset Cost Service Computers 5 info. system S 400,000 03/31/2020 Luxury autot 80,000 05/26/2020 Assembly equipment 1,200,000 08/15/2020 Storage building 700,000 11/13/2020 I TUsed 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 1010.) (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.) 3. Compute the maximum 2019 depreciation deductions, including 179 expense (ignoring bonus depreciation). Ofce furniture Machinery Delivery truck Total 2019 Cost Recovery b. Compute the maximum 2020 depreciation deductions. including 179 expense (ignoring bonus depreciation). ____ 2020 Assets Computers & Info. System Assembly Equipment Storage Building Total 2020 Cost Recovery $ 0 $ 0 $ 0 $ 0 $ 0 k c. Compute the maximum 2020 depreciation deductions, including 179 expense, but now assume that Karane would like to take bonus depreciation as well. _____ $ _____ _____ ____ _____ _____ _____ 0 Total 2020 Cost Recovery \\ d. Now assume that during 2020, Karane decides to buy a competitor's assets for a purchase price of $1,350,000. Compute the maximum 2020 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.) Date Placed in Asset Cost Service Inventory $220,000 09/15/2020 Office furniture 230,000 09/15/2020 Machinery 250,000 09/15/2020 Patent 198,000 09/15/2020 Goodwill 2,000 09/15/2020 Building 430,000 09/15/2020 Land 20,000 09/15/2020 I Current Total Cost Description Cost Sec. 179 Bonus MACRS Basis MACRS Current Expense Depreciation Amortization Recovery Deduction 2019 Assets Office Furniture EA 0 Machinery 0 Used Delivery Truck 0 2020 Assets Computers & Info. System O Luxury Auto 0 Assembly Equipment 0 Storage Building O Inventory Office Furniture Machinery O O Patent O Goodwill O Building O Land 0Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7.41 11.52 12.49 11.52 7.70 6.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92 7.37 6.23 5.285 Year 7 8.93 6.55 5.90 4.888 Year 8 4.46 6.55 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 6.55 5.90 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 5.90 4.461 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year 8 1.09 TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarterTABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the third quarter 7-Year Year 1 10.71% Year 2 25.51 Year 3 18.22 " " TABLE 2d MACRS-Mid Quarter Convention: F or property placed in service during the fourth quarter Depreciation Rate for Recovery Period 13.68 14.06 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line27 .5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 10 Month 11 Month 12 Year 1 3.485% 1.970% 0.152% Year 2-9 3.636 3.636 3.636 Year 10 3.637 3.637 3.636 Year 11 3.636 3.636 3.637 Year 12 3.637 3.637 3.636 Year 13 3.636 3.636 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 16 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 18 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 20 3 .637 3.636 Year 21 3 .636 3.637 Year 22 3 .637 3.636 Year 23 3 .636 3.637 Year 24 3 .637 3.636 Year 25 3 .636 3.637 Year 26 3 .637 3.636 Year 27 3 .636 3.637 Year 28 1.97 2.273 2.576 2.879 3.182 3.485 3.636 3.636 3.636 3.636 3.636 3.636 Year 29 -- 0.152 0.455 0.758 1.061 1.364 1.667 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line31.5 Years (for assets placed in service before May 13, 1993) Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 3.042% 2.778% 2.513% 2.249% 1.984% 1.720% 1.455% 1.190% 0.926% 0.661% 0.397% 0.132% Year 2-7 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 Year 8 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.175 3.175 3.175 3.175 Year 9 3.174 3.175 3.174 3.175 3.174 3,175 3.174 3.175 3.174 3.175 3.174 3.175 Year 10 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 11 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 13 3.174 Year 14 3.175 Year 15 3.174 Year 16 3.175 Year 17 3.174 Year 18 3.175 Year 19 3.174 Year20 3.175 Year 21 3.174 Year 22 3.175 Year24 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 25 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year26 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 27 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year28 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 29 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year30 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 TABLE 5 Nonresidentia] Real Property Mid-Month Convention Straight Line39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service 1 Month 8 Month 9 Month 10 Month 11 Month 12 0.963% 0.749% 0.535% 0.321% 0.107% I 2.564 2.564 2.564 2.564 2.564 1.605 1.819 2.033 2.247 2.461 EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year Placed in Service Year 2020* 2019 2018 2017 1 10,100** 10,100* 10,000* 3,160* 2 16,100 16,100 16,000 5,100 3 9,700 9,700 9,600 3,050 4 and after 5,760 5,760 5,760 1,875 *As of press date, the IRS had not released the 2020 limitations for automobiles, so throughout the chapter we use the some limitations as in 201 9 for 2020. **$8,000 additional depreciation is allowed when bonus depreciation is claimed [168(k)(2)(F)]