Question
Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2018. 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 2018. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2018:
Asset | Cost | Date Placed in Service | |
Office furniture | $ | 150,000 | 02/03/2018 |
Machinery | $ | 1,560,000 | 07/22/2018 |
Used delivery truck* | $ | 40,000 | 08/17/2018 |
*Not considered a luxury automobile.
During 2018, Karane was very successful (and had no 179 limitations) and decided to acquire more assets this next year to increase its production capacity. These are the assets acquired during 2019:
Asset | Cost | Date Placed in Service | |
Computers & info. system | $ | 40,000 | 03/31/2019 |
Luxury auto | $ | 80,000 | 05/26/2019 |
Assembly equipment | $ | 1,200,000 | 08/15/2019 |
Storage building | $ | 700,000 | 11/13/2019 |
Used 100% for business purposes.
Compute the maximum 2019 depreciation deductions, including 179 expense, but now assume that Karane would like to take bonus depreciation.
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