Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

image text in transcribed

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 varlous types of assets. Below is a list of assets acquired during 2018: Asset Office furniture Machinery Used delivery truck Cost $ 158,888 1,568,888 42,890 Date Placed in Service 02/03/2018 8 7/22/2018 08/17/2018 *Not considered a luxury automobile. During 2018, Karane was very successful and had no $179 limitations) and decided to acquire more assets in 2019 to Increase its production capacity. These are the assets acquired during 2019 Asset Computers & info. system Luxury autot Assembly equipment Storage building Cost $ 480,000 88,888 1,289,890 700,800 Date Placed in Service 03/31/2019 05/26/2019 08/15/2019 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.) c. Compute the maximum 2019 depreciation deductions, Including $179 expense, but now assume that karane would like to take bonus depreciation. Description Cost Sec. 179 Expense Bonus MACRS Basis Current MACRS Depreciation Total Depreciation Deduction 2018 Assets Office furniture Machinery Used delivery truck 2019 Assets Computers & Info. System Luxury Auto Assembly Equipment Storage Building Totals

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions