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Please solve it ASAP 1 Required information [The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station,
Please solve it ASAP 1
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: Asset Cost Office furniture $ 270,000 Machinery 1,584,000 Used delivery truck* 64,000 *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 3179 limitations) and decided to acquire more assets in 2021 to increase its production capacity. These are the assets acquired during 2021: Asset Computers and information system Luxury autot Assembly equipment Storage building Cost $ 424,000 86,000 1,320,000 700,000 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 $1,762,500 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). Description Cost Section 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction $ 0 $ 0 270,000 $ 1,584,000 64,000 0 0 0 0 2020 Assets Office furniture Machinery Used delivery truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total 0 424,000 0 86,000 0 1,320,0001 1,050,000 700,000 $ 4,448,000 $ 1,050,000 $ 0 1,050,000 0 $ 1,050,000 0 $ 0Step by Step Solution
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