Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2019. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019:

Asset	Cost		Date Placed in Service
Office furniture	$	150,000	02/03/2019
Machinery		1,560,000	07/22/2019
Used delivery truck*		40,000	08/17/2019

*Not considered a luxury automobile.

During 2019, Karane was very successful (and had no 179 limitations) and decided to acquire more assets in 2020 to increase its production capacity. These are the assets acquired during 2020:

Asset	Cost		Date Placed in Service
Computers & info. system	$	400,000	03/31/2020
Luxury auto		80,000	05/26/2020
Assembly equipment		1,200,000	08/15/2020
Storage building		700,000	11/13/2020

Used 100% for business purposes.

Karane generated taxable income in 2020 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.)

d. Now assume that during 2020, Karane decides to buy a competitors assets for a purchase price of $1,350,000. Compute the maximum 2020 cost recovery, including 179 expense and bonus depreciation. Karane purchased the following assets for the lump-sum purchase price: (Round your final answers to the nearest whole dollar amount.)

Asset	Cost		Date Placed in Service
Inventory	$	220,000	09/15/2020
Office furniture		230,000	09/15/2020
Machinery		250,000	09/15/2020
Patent		198,000	09/15/2020
Goodwill		2,000	09/15/2020
Building		430,000	09/15/2020
Land		20,000	09/15/2020

Description	Cost	Sec. 179 Expense	Bonus	MACRS Basis	Current MACRS Depreciation	Current Amortization	Total Cost Recovery Deduction
2019 Assets
Office Furniture							$0
Machinery							0
Used Delivery Truck							0
2020 Assets
Computers & Info. System							0
Luxury Auto							0
Assembly Equipment							0
Storage Building							0
Inventory
Office Furniture							0
Machinery							0
Patent							0
Goodwill							0
Building							0
Land							0
Totals	$0	$0	$0	$0	$0	$0	$0