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: Date Placed in Asset Cost Service Office furniture $ 290,000 02/03/2020 Machinery 1,588,000 07/22/2020 Used delivery truck 68,000 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 Date Placed in Asset Cost Service Computers and information system $ 428,000 83/31/2021 Luxury autot 87,000 05/26/2021 Assembly equipment 1,340,000 08/15/2021 Storage building 900,000 11/13/2021 tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1,767,500 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: b. Compute the maximum 2021 depreciation deductions, including 5179 expense (ignoring bonus depreciation). Description Cost Section 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 2020 Assets Office furniture Machinery Used delivery truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total Required: c. Compute the maximum 2021 depreciation deductions, including 5179 expense, but now assume that karane would like to take bonus depreciation Description Cost Section 179 Expense Bonus MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 2020 Assets Office Furniture Machinery Used Delivery Truck 2021 Assets Computers and information System Luxury Auto Assembly Equipment Storage Building Total 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: Date Placed in Asset Cost Service Office furniture $ 290,000 02/03/2020 Machinery 1,588,000 07/22/2020 Used delivery truck 68,000 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 Date Placed in Asset Cost Service Computers and information system $ 428,000 83/31/2021 Luxury autot 87,000 05/26/2021 Assembly equipment 1,340,000 08/15/2021 Storage building 900,000 11/13/2021 tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1,767,500 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: b. Compute the maximum 2021 depreciation deductions, including 5179 expense (ignoring bonus depreciation). Description Cost Section 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 2020 Assets Office furniture Machinery Used delivery truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total Required: c. Compute the maximum 2021 depreciation deductions, including 5179 expense, but now assume that karane would like to take bonus depreciation Description Cost Section 179 Expense Bonus MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 2020 Assets Office Furniture Machinery Used Delivery Truck 2021 Assets Computers and information System Luxury Auto Assembly Equipment Storage Building Total
