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Required: b. Compute the maximum 2022 depreciation deductions, including 179 expense (ignoring bonus depreciation). Description 2021 Assets Office furniture Machinery Used delivery truck Cost Section

Required: b. Compute the maximum 2022 depreciation deductions, including 179 expense (ignoring bonus depreciation). Description 2021 Assets Office furniture Machinery Used delivery truck Cost Section 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction $ 150,000 1,560,000 40,000 $ 150,000 $ 36,735 $ 36,735 540,000 132,246 132,246 40,000 12,800 12,800 2022 Assets Computers and Information System 400,000 400,000 0 Luxury Auto 80,000 0 Assembly Equipment 1,200,000 0 Storage Building 700,000 0 Total $ 4,130,000 0 $ 1,130,000 $ 181,781 $ 181,781 ! 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 2021. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2021: Date Placed in Asset Office furniture Machinery Used delivery truck* Cost Service $ 150,000 1,560,000 40,000 02/03/2021 07/22/2021 08/17/2021 *Not considered a luxury automobile. During 2021, Karane was very successful (and had no 179 limitations) and decided to acquire more assets in 2022 to increase its production capacity. These are the assets acquired during 2022: Date Placed in Service 03/31/2022 Asset Computers and information system Cost $ 400,000 Luxury auto* Assembly equipment Storage building 80,000 1,200,000 700,000 05/26/2022 08/15/2022 11/13/2022 *Used 100% for business purposes. Karane generated taxable income in 2022 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.) Note: Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers

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