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My numbers aren't all correct. Thanks in advance. Required Information [The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based
My numbers aren't all correct. Thanks in advance.
Required Information [The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2020. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2020: Date Placed in Asset Cost Service Office furniture $ 158,00 02/03/2020 Machinery 1,560,eee 07/22/2020 Used delivery truck 48,000 08/17/2020 *Not considered a luxury automobile. During 2020, Karane was very successful and had no 5179 limitations) and decided to acquire more assets in 2021 to increase its production capacity. These are the assets acquired during 2021: Date Placed in Asset Cost Service Computers and information system $ 480, eee 03/31/2021 Luxury autot 80, eee 05/26/2821 Assembly equipment 1,200, eea 08/15/2021 Storage building 780, eea 11/13/2021 tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1.732,500 for purposes of computing the $179 expense limitation. (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.) Required: c. Compute the maximum 2021 depreciation deductions, including 5179 expense, but now assume that Karane would like to take bonus depreciation Description Cost Section 179 Expense Bonus MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction s 150,000 s 1.560.000 40.000 710.000 40.000 173.879 12.800 0 173,879 12,800 2020 Assets Office Furniture Machinery Used Delivery Truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total 400,000 8,000 200,000 72.000 400.000 80.000 1.200.000 700.000 4,130,000 10.000 1,000,000 400,000 18.000 1.200.000 2,247 1.800.926 700,000 1,522,000 2,247 198.920 $ s 1,000,000 s 608.000 $ s SStep by Step Solution
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