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I need help finding the current MACRS depreciation of the 2020 assets and 2021 assets Required information [The following information applies to the questions displayed
I need help finding the current MACRS depreciation of the 2020 assets and 2021 assets
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 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 Cost Date Placed in Service 02/03/2020 Office furniture $ 150,000 1,560,000 Machinery 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 $179 limitations) and decided to acquire more assets in 2021 to increase its production capacity. These are the assets acquired during 2021 Asset Cost Date Placed in Service 03/31/2021 $ 400,000 Computers & Information system Luxury autot 80,000 05/26/2021 1,200,000 08/15/2021 Assembly equipment Storage building 700,000 11/13/2021 tUsed 100% for business purposes. Karane generated taxable income in 2021 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.) Required: b. Compute the maximum 2021 depreciation deductions, including $179 expense (ignoring bonus depreciation). Description Cost Section 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 2020 Assets Office furniture O $ 150,000 $ Machinery 1,560,000 0 520,000 Used delivery truck 40,000 0 40,000 2021 Assets Computers and Information System 400,000 0 400,000 Luxury Auto 80,000 0 80,000 Assembly Equipment 1,200,000 1,050.000 150,000 Storage Building 700,000 0 700,000 Total $ 4,130,000 $1,050,000 $2,040,000 $ $ 150,000 $ 0 0 0 80,000 80,000 10,100 10,100 21,435 1,071,435 0 111,535 $ 1,161,535 Step by Step Solution
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