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Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2022. In the process of setting up the business, Karane has
Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2022. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2022: Asset Office furniture Date Placed in Cost Service Machinery Used delivery truck* $ 400,000 1,810,000 90,000 02/03/2022 07/22/2022 08/17/2022 *Not considered a luxury automobile. During 2022, Karane was very successful (and had no $179 limitations) and decided to acquire more assets in 2023 to increase its production capacity. These are the assets acquired during 2023: Date Placed in Asset Computers and information system Luxury auto* Assembly equipment Storage building Cost $ 450,000 92,500 1,450,000 800,000 Service 03/31/2023 05/26/2023 08/15/2023 11/13/2023 *Used 100% for business purposes. Karane generated taxable income in 2023 of $1,795,000 for purposes of computing the $179 expense limitation. (Use MACRS Table 1, Table 2, Table 3, Table 4, Table 5, and Exhibit 10-10.) Note: Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers. Required: c. Compute the maximum 2023 depreciation deductions, including $179 expense, but now assume that Karane would like to take bonus depreciation. Note: Round your final answers to nearest whole dollar.
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To compute the maximum 2023 depreciation deductions including 179 expense and assuming Karane would like to take bonus depreciation we can use the fol...Get Instant Access to Expert-Tailored Solutions
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