I just need help on finding MARCS depreciation amounts for A,B, and C. Thank you.
[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 Office furniture Machinery Used delivery truck Cost $ 150,000 1,560,000 40,000 Date Placed in Service 02/03/2019 07/22/2019 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 Computers & info. system Luxury autot Assembly equipment Storage building tUsed 100% for business purposes. Cost $ 400,000 80,000 1,200,000 700,000 Date Placed in Service 03/31/2020 05/26/2020 08/15/2020 11/13/2020 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.) 1. Award: 2.50 points a. Compute the maximum 2019 depreciation deductions, including $179 expense (ignoring bonus depreciation). Description Office furniture Machinery Delivery truck Total 2019 Cost Recovery Current Total Cost Cost $179 Expense MACRS Basis MACRS Recovery Depreciation Deduction $ 150,000 $ 0 $ 150,000 $ 36,735 $ 36,735 1,560,000 0 560,000 137,144 137,144 40,000 0 40,000 12,800 12,800 $ 1,750,000 $ 0 $ 750,000 $ 186,679 $ 186,679 b. Compute the maximum 2020 depreciation deductions, including $179 expense (ignoring bonus depreciation). Description Cost Sec. 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 2019 Assets Office furniture $ $ 0 $ $ 36,735 $ 150,000 1,560,000 40,000 0 Machinery Used delivery truck 150,000 560,000 40,000 137,144 36,735 137,144 12,800 0 12,800 2020 Assets 400,000 0 80,000 0 Computers & Info. System Luxury Auto Assembly Equipment Storage Building 80,000 1,200,000 700,000 400,000 80,000 200,000 700,000 10,000 28,580 80,000 10,000 1,028,580 2,247 1,000,000 0 2,247 Total 2020 Cost Recovery $ 4,130,000 $ 1,000,000 $ 2,130,000 $ 307,506 $ 1,307,506 c. Compute the maximum 2020 depreciation deductions, including $179 expense, but now assume that Karane would like to take bonus depreciation. Description Cost Sec. 179 Expense Bonus MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 2019 Assets Office Furniture $ $ $ 0 150,000 1,560,000 40,000 Machinery Used Delivery Truck 150,000 560,000 40,000 0 0 2020 Assets 400,000 400,000 8,000 72,000 Computers & Info. System Luxury Auto Assembly Equipment Storage Building 400,000 80,000 1,200,000 700,000 8,000 1,200,000 1,020,000 180,000 700,000 0 Total 2020 Cost Recovery $ 4,130,000 $ 1,020,000 $ 588,000 $ 1,522,000 $ 0 $ 1,608,000 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.) Asset Inventory Office furniture Machinery Patent Goodwill Building Land Cost $220,000 230,000 250,000 198,000 2,000 430,000 20,000 Date Placed in Service 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 Description Cost Sec. 179 Expense Bonus MACRS Basis Current MACRS Depreciation Current Amortization Total Cost Recovery Deduction 2019 Assets Office Furniture $ $ 150,000 $ 0 150,000 1,560,000 40,000 Machinery Used Delivery Truck 0 560,000 40,000 0 400,000 2020 Assets Computers & Info. System Luxury Auto Assembly Equipment Storage Building 400,000 8,000 72,000 80,000 1,200,000 700,000 400,000 8,000 1,200,000 0 1,020,000 180,000 700,000 220,000 230.000 Inventory Office Furniture Machinery Patent Goodwill 230,000 250,000 250,000 198,000 2,000 230,000 250,000 198,000 0 198,000 2,000 430,000 430,000 0 Building Land 20,000 0 Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 20-Year 3.750% Year 1 Year 2 44.45 32.00 24.49 18.00 9.50 7.219 14.81 19.20 17.49 14.40 8.55 6.677 Year 3 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 4.462 5.91 5.90 Year 12 4.461 4.462 Year 13 5.91 5.90 Year 14 4.461 5.91 4.462 Year 15 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231 [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 Office furniture Machinery Used delivery truck Cost $ 150,000 1,560,000 40,000 Date Placed in Service 02/03/2019 07/22/2019 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 Computers & info. system Luxury autot Assembly equipment Storage building tUsed 100% for business purposes. Cost $ 400,000 80,000 1,200,000 700,000 Date Placed in Service 03/31/2020 05/26/2020 08/15/2020 11/13/2020 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.) 1. Award: 2.50 points a. Compute the maximum 2019 depreciation deductions, including $179 expense (ignoring bonus depreciation). Description Office furniture Machinery Delivery truck Total 2019 Cost Recovery Current Total Cost Cost $179 Expense MACRS Basis MACRS Recovery Depreciation Deduction $ 150,000 $ 0 $ 150,000 $ 36,735 $ 36,735 1,560,000 0 560,000 137,144 137,144 40,000 0 40,000 12,800 12,800 $ 1,750,000 $ 0 $ 750,000 $ 186,679 $ 186,679 b. Compute the maximum 2020 depreciation deductions, including $179 expense (ignoring bonus depreciation). Description Cost Sec. 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 2019 Assets Office furniture $ $ 0 $ $ 36,735 $ 150,000 1,560,000 40,000 0 Machinery Used delivery truck 150,000 560,000 40,000 137,144 36,735 137,144 12,800 0 12,800 2020 Assets 400,000 0 80,000 0 Computers & Info. System Luxury Auto Assembly Equipment Storage Building 80,000 1,200,000 700,000 400,000 80,000 200,000 700,000 10,000 28,580 80,000 10,000 1,028,580 2,247 1,000,000 0 2,247 Total 2020 Cost Recovery $ 4,130,000 $ 1,000,000 $ 2,130,000 $ 307,506 $ 1,307,506 c. Compute the maximum 2020 depreciation deductions, including $179 expense, but now assume that Karane would like to take bonus depreciation. Description Cost Sec. 179 Expense Bonus MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 2019 Assets Office Furniture $ $ $ 0 150,000 1,560,000 40,000 Machinery Used Delivery Truck 150,000 560,000 40,000 0 0 2020 Assets 400,000 400,000 8,000 72,000 Computers & Info. System Luxury Auto Assembly Equipment Storage Building 400,000 80,000 1,200,000 700,000 8,000 1,200,000 1,020,000 180,000 700,000 0 Total 2020 Cost Recovery $ 4,130,000 $ 1,020,000 $ 588,000 $ 1,522,000 $ 0 $ 1,608,000 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.) Asset Inventory Office furniture Machinery Patent Goodwill Building Land Cost $220,000 230,000 250,000 198,000 2,000 430,000 20,000 Date Placed in Service 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 Description Cost Sec. 179 Expense Bonus MACRS Basis Current MACRS Depreciation Current Amortization Total Cost Recovery Deduction 2019 Assets Office Furniture $ $ 150,000 $ 0 150,000 1,560,000 40,000 Machinery Used Delivery Truck 0 560,000 40,000 0 400,000 2020 Assets Computers & Info. System Luxury Auto Assembly Equipment Storage Building 400,000 8,000 72,000 80,000 1,200,000 700,000 400,000 8,000 1,200,000 0 1,020,000 180,000 700,000 220,000 230.000 Inventory Office Furniture Machinery Patent Goodwill 230,000 250,000 250,000 198,000 2,000 230,000 250,000 198,000 0 198,000 2,000 430,000 430,000 0 Building Land 20,000 0 Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 20-Year 3.750% Year 1 Year 2 44.45 32.00 24.49 18.00 9.50 7.219 14.81 19.20 17.49 14.40 8.55 6.677 Year 3 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 4.462 5.91 5.90 Year 12 4.461 4.462 Year 13 5.91 5.90 Year 14 4.461 5.91 4.462 Year 15 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231
