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Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2018. 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 2018. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2018: Date Placed in Service 02/03/2018 Asset Cost Office furniture 150,000 Machinery Used delivery truck* 07/22/2018 1,560,000 40,000 08/17/2018 Not considered a luxury automobile. During 2018, Karane was very successful (and had no S179 limitations) and decided to acquire more assets in 2019 to increase its production capacity. These are the assets acquired during 2019: Date Placed in Service 03/31/2019 05/26/2019 Asset Cost Computers & info. system Luxury autot Assembly equipment Storage building 400,000 80,000 08/15/2019 1,200,000 700,000 11/13/2019 tUsed 100% for business purposes. Karane generated taxable income in 2019 of $1,732,500 for purposes of computing the $179 expense. (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 2018 depreciation deductions, including S179 expense (ignoring bonus depreciation) Total Depreciation Deduction Current MACRS Depreciation Description Cost $179 Expense MACRS Basis Office furniture $ 0 Machinery Delivery truck Totals $
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