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:

76. 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 Date Placed in Service Office furniture 02/03/2020 Machinery 07/22/2020 Used delivery truck 08/17/2020 "Not considered luxury automobile During 2020. Karane was very successful (and had no $179 limitations and decided to acquire more assets in 2021 to increase Page 10.58 its production capacity. These are the assets acquired during 2021: Cost $ 150,000 1,560,000 40.000 Asset Cost Date Placed in Service Computers & info system $ 400.000 03/312021 Luxury auto 80,000 05/26/2021 Assembly equipment 1.200.000 08/15/2021 Storage building 700.000 1113/2021 "Used as for business purposes. Karane generated taxable income in 2021 of $1.732,500 for purposes of computing the $179 expense limitation. a) Compute the maximum 2020 depreciation deductions, including $179 expense (ignoring bonus depreciation). b) Compute the maximum 2021 depreciation deductions, including $179 expense (ignoring bonus depreciation) c) Compute the maximum 2021 depreciation deductions, including $179 expense, but now assume that Karane would like to take bonus depreciation d) Now assume that during 2021, Karane decides to buy a competitor's assets for a purchase price of $1,350,000. Compute the maximum 2021 cost recovery, including $179 expense and bonus depreciation. Karane purchased the following assets for the lump-sum purchase price: Asset Inventory Office furniture Machinery Patent Goodwill Building Land Cost Date Placed in Service $220,000 09/15/2021 230,000 09/15/2021 250,000 09/15/2021 198,000 09/15/2021 2,000 09/15/2021 430,000 09/15/2021 20,000 09/15/2021 e) Complete Form 4562 for part (b) (use the most current form available). Naranda carious Tesorios da Asset Cost Date Placed in Service Orice furniture $150 DOO 02/03/2020 Machinery 1,500,000 01/22/2020 Used delivery truck 40.000 017/2020 Nutcome Durina 2020, Karane was very successful and had no 5179 limitations and decided to acquire more assets in 2021 to increase its production capacity. These are the assets acquired during 2021 Page 1 Asset Computers into system Luwu Asembly equipment Storage buding Cost $ 400 000 30,000 1.200 OCO 700.000 Date Placed in Service 03/312021 05/26/2021 Om031 1/11/2021 Katane enerated table income in 2021 of 51.732.500 for purposes of computing the $179 expense limitation Date in sve Asset Method Life Convention Cost Accum depree of $179 expense MACRS basis Rate Current expense Total expense amor 1,050,000 02/03/20 Olice furniture 07/22/20 Machinery OK/17/20 Used delivery truck 03/31/21 Computeri infonystem 05/26/21 Luxury auto 06/15/21 Assembly equipment 11/1321 Storage building 150,000 1.560.000 40,000 400,000 N0.000 1.200,000 150,000 510,000 40,000 400,000 80,000 150,000 700,000 1,050,000 700.000