Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2017. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2017: Asset Cost Date Placed in Service Office furniture $ 150,000 02/03/2017 Machinery 1,560,000 07/22/2017 Used delivery truck* 40,000 08/17/2017 *Not considered a luxury automobile. During 2017, Karane was very successful (and had no 179 limitations) and decided to acquire more assets this next year to increase its production capacity. These are the assets acquired during 2018: Asset Cost Date Placed in Service Computers & info. system $ 400,000 03/31/2018 Luxury auto 80,000 05/26/2018 Assembly equipment 1,200,000 08/15/2018 Storage building 700,000 11/13/2018 Used 100% for business purposes. Karane generated taxable income in 2018 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.) Assume the 2017 179 limits are the same as those in 2018. (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.)

B. Compute the maximum 2018 depreciation deductions including 179 expense (ignoring bonus depreciation).

C. Compute the maximum 2018 depreciation deductions including 179 expense, but now assume that Karane would like to take bonus depreciation.

D. Now assume that during 2018, Karane decides to buy a competitors assets for a purchase price of $1,350,000. Compute the maximum 2018 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	09/15/2018
Office furniture		230,000	09/15/2018
Machinery		250,000	09/15/2018
Patent		198,000	09/15/2018
Goodwill		2,000	09/15/2018
Building		430,000	09/15/2018
Land		20,000	09/15/2018

e. Complete Karane Enterprises's Part I of Form 4562 for part (b).(Input all values as positive numbers. Use 2018 tax rules regardless of year on tax form.)