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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
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: Cost Date Placed in Service Asset Office furniture Machinery Used delivery trucks $ 150,000 1,560,000 40,000 02/03/2021 07/22/2021 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: Computers and information system Asset Luxury auto Assembly equipment Storage building Date Placed in Service 03/31/2022 Cost $ 400,000 80,000 1,200,000 700,000 05/26/2022 08/15/2022 11/13/2022 "Used 100% for business purposes. Karane generated taxable income in 2022 of $1,732,500 for purposes of computing the 5179 expense limitation. (Use MACRS Table 1. Table 2, Table 3. Table 4, Table 5, and Exhibit 10-10.) Note: Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers. Required: d. Now assume that during 2022, Karane decides to buy a competitor's assets for a purchase price of $1,350,000. 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.
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