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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

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 Cost Date Placed in Service Office furniture $ 150,000 02/03/2020 Machinery 1,560,000 07/22/2020 Used delivery truck* 40,000 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: Asset Cost Date Placed in Service Computers & information system $ 400,000 03/31/2021 Luxury auto 80,000 05/26/2021 Assembly equipment 1,200,000 08/15/2021 Storage building 700,000 11/13/2021 Used 100% for business purposes.Karane generated taxable income in 2021 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.)

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 competitors 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: (Round your final answers to the nearest whole dollar amount.)

e. Complete Karane Enterprises's Form 4562 for part (b).

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