Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2022. In the...
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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 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. 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... View the full answer
Related Book For
Essentials Of Federal Taxation 2019
ISBN: 9781260190045
10th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
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