Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2021. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2021:

Asset	Cost	Date Placed in Service
Office furniture	$ 170,000	02/03/2021
Machinery	1,564,000	07/22/2021
Used delivery truck*	44,000	08/17/2021

*Not considered a luxury automobile.

During 2021, Karane was very successful (and had no 179 limitations) and decided to acquire more assets in 2022 to increase its production capacity. These are the assets acquired during 2022:

Asset	Cost	Date Placed in Service
Computers and information system	$ 404,000	03/31/2022
Luxury auto*	81,000	05/26/2022
Assembly equipment	1,220,000	08/15/2022
Storage building	900,000	11/13/2022

*Used 100% for business purposes.

Required:

1. 
2. 
3. 
4. Now assume that during 2022, Karane decides to buy a competitor's assets for a purchase price of $1,373,960. Compute the maximum 2022 cost recovery, including 179 expense and bonus depreciation. Karane purchased the following assets for the lump-sum purchase price:

Note: Round your final answers to the nearest whole dollar amount.

Asset	Cost	Date Placed in Service
Inventory	$ 224,000	09/15/2022
Office furniture	234,000	09/15/2022
Machinery	254,000	09/15/2022
Patent	201,600	09/15/2022
Goodwill	2,360	09/15/2022
Building	434,000	09/15/2022
Land	24,000	09/15/2022

Assume that Karane takes the maximum section 179 expense for the Assembly Equipment.

5. Complete Karane Enterprises's Form 4562 for part (b).

\begin{tabular}{|c|c|c|c|c|c|c|c|} \hline Description & Cost & Expense & Bonus & MACRS Basis & \begin{tabular}{c} MACRS \\ Depreciation \end{tabular} & Amortization & \begin{tabular}{l} Recovery \\ Deduction \end{tabular} \\ \hline \multicolumn{8}{|l|}{2021 Assets } \\ \hline Office Furniture & & & & & & & $ \\ \hline Machinery & & & & & & & 0 \\ \hline Used Delivery Truck & & & & & & & 0 \\ \hline \multicolumn{8}{|l|}{2022 Assets } \\ \hline Computers and Information System & & & & & & & 0 \\ \hline Luxury Auto & & & & & & & 0 \\ \hline Assembly Equipment & & & & & & & 0 \\ \hline Storage Building & & & & & & & 0 \\ \hline Inventory & & & & & & & 0 \\ \hline Office Furniture & & & & & & & 0 \\ \hline Machinery & & & & & & & 0 \\ \hline \end{tabular} c. Compute the maximum 2022 depreciation deductions, including $179 expense, but now assume that Karane would like to ta bonus depreciation. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline Patent & & & & & & & & & & & & & \\ \hline Goodwil & & & & & & & & & & & & & \\ \hline Building & & & & & & & & & & & & & \\ \hline Land & & & & & & & & & & & & & \\ \hline Totals & $ & 0 & $ & 0 & $ & 0 & $ & 0 & $ & 0 & $ & 0 & $ \\ \hline \end{tabular} Compute the maximum 2021 depreciation deductions, including 179 expense (ignoring bonus depreciation). b. Compute the maximum 2022 depreciation deductions, including $179 expense (ignoring bonus depreciation)