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Karane Enterprises, a calendar year manufacturer based in College Station, Texas, began business in 2017. In the process of setting up the business, Karane has

Karane Enterprises, a calendar year manufacturer based in College Station, Texas, began business in 2017. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2017:

Assets Cost Date Placed in Service

Office furniture 150,000 2/3/17

Machinery 1,560,000 7/22/17

Used delivery truck 40,000 8/17/17

During 2017, Karane was very successful (and had no 179 limitation) and decided to acquire more assets this next year to increase its production capacity. These are the assets acquired during 2018:

Assets Cost Date Placed in Service

Computers & info syst 400,000 3/31/18

Luxury auto 80,000 5/26/18

Assembly equip 1,200,000 8/15/18

Storage bldg. 700,000 11/13/18

Karane generated taxable income in 2018 of $1,732,500 for purposes of computing the 179 expense.

Required: B. Compute the maximum 2018 depreciation deductions including 179 expense. Assume that Karane would like to take bonus depreciation.

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