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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

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 office furniture Machinery Used delivery truck Service Date Placed in Cost $150,000 1,560,000 02/03/2020 07/22/2020 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 Computers and information system Luxury autot Assembly equipment storage building tused 100% for business purposes. Date Placed in Service Cost $ 400,000 03/31/2021 se, eee 1,200,000 700,000 05/26/2021 08/15/2021 11/13/2021 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: . Compute the maximum 2021 depreciation deductions, including $179 expense, but now assume that Karane would like to take Conus depreciation. Description 2020 Assets Office Furniture Machinery Used Delivery Truck Cost Section 179 Expense Bonus Current MACRS Basis MACRS Depreciation Total Cost Recovery Deduction S 150,000 $ 0 $ 1,560,000 150,000 $ 1,560,000 05 0 $ 150.000 0 0 1,560,000 40,000 0 40.000 0 0 40,000 2021 Assets Computers and Information System 400.000 0 40,000 0 0 Luxury Auto 80.000 0 8,000 72,000 10,100 18,100 Assembly Equipment 1,200,000 1,050,000 0 150.000 21,435 Storage Building 700.000 0 0 700,000 2,247 1,050,000 2.247 Total $ 4,130,000 $ 1,050,000 $ 1,758,000 $ 962,000 $ 33.782 $ 2,820 347

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