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Please help fix the incorrect Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2020. In the process of setting up
Please help fix the incorrect
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: Asset Cost Office furniture $ 150,000 Machinery 1,560,000 Used delivery truck* 40,000 *Not considered a luxury automobile. Date Placed in Service 02/03/2020 07/22/2020 08/17/2020 During 2020, Karane was very successful and had no $179 limitations) and decided to acquire more assets in 2021 to increase its production capacity. These are the assets acquired during 2021: Asset Computers & information system Luxury autot Assembly equipment Storage building Cost $ 400,000 80,000 1,200,000 700,000 Date Placed in Service 03/31/2021 05/26/2021 08/15/2021 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: b. Compute the maximum 2021 depreciation deductions, including $179 expense (ignoring bonus depreciation). Answer is complete but not entirely correct. Description Cost Section 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction $ 0 $ $ 150,000 1,560,000 40,000 0 >> $ 150,000 560,000 40,000 36,735 $ 132,246 X 12,800 36,735 132,246 12,800 0 2020 Assets Office furniture Machinery Used delivery truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total 400,000 80,000 1,200,000 700,000 $ 4,130,000 0 1,040,000 0 $ 1,040,000 400,000 80,000 160,000 700,000 $ 2,090,000 80,000 10,100 22,864 2,247 296,992 80,000 10,100 1,062,864 2,247 $ 1,336,992 $Step by Step Solution
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