Required information Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (Algo) [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 Date Placed in Service Office furniture$ 230,000 02/03/2020 Machinery Used delivery 1,576,000 07/22/2020 56,000 08/17/2020 truck* *Not considered a luxury automobile. 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: Date Placed in Asset Computers and Cost information system $ 416,000 Service 03/31/2021 Luxury autot 84,000 05/26/2021 Assembly equipment 1,280,000 08/15/2021 900,000 11/13/2021 Storage building Used 100% for business purposes. Karane generated taxable income in 2021 of $1,752,500 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.) Comprehensive Problem 10-76 Part e (Algo) e. Complete Karane Enterprises's Form 4562 for part (b). (Use 2021 tax rules regardless of year on tax form. Do not skip rows when entering property under line item 26 of Form 4562. Assets acquired during 2021 have to be entered under Section B part of Form 4562, page 1.) Required information Comprehensive Problem 11-71 (LO 11-1, LO 11-2, LO 11-3, LO 11-4, LO 11-5, LO 11-6) (Algo) [The following information applies to the questions displayed below.] Moab Incorporated manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions during the year. a. Moab Incorporated sold a machine that it used to make computerized gadgets for $27,600 cash. It originally bought the machine for $19,400 three years ago and has taken $8,000 in depreciation. b. Moab Incorporated held stock in ABC Corporation, which had a value of $13,000 at the beginning of the year. That same stock had a value of $16,230 at the end of the year. c. Moab Incorporated sold some of its inventory for $7,200 cash. This inventory had a basis of $5,000. d. Moab Incorporated disposed of an office building with a fair market value of $76,000 for another office building with a fair market value of $55,800 and $20,200 in cash. It originally bought the office building seven years ago for $63,000 and has taken $15,000 in depreciation. e. Moab Incorporated sold some land held for investment for $30,000. It originally bought the land for $33,600 two years ago. f. Moab Incorporated sold another machine for a note payable in four annual installments of $12,500. The first payment was received in the current year. It originally bought the machine two years ago for $34,000 and has claimed $9,100 in depreciation expense against the machine. g. Moab Incorporated sold stock it held for eight years for $2,850. It originally purchased the stock for $2,150. h. Moab Incorporated sold another machine for $7,500. It originally purchased this machine six months ago for $9,100 and has claimed $830 in depreciation expense against the asset. Comprehensive Problem 11-71 Part (1) and (2) (Algo) Required: 1. Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized is $1231, capital, or ordinary. 2. From the recognized gains/losses determined in part 1, determine the net 1231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Incorporated also has $2,200 of nonrecaptured net 1231 losses from previous years. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized is $1231, capital, or ordinary. (Do not round intermediate computations. Loss amounts should be indicated by a minus sign.) Ordinary Capital 1231 Gain/(Loss) Gain/(Loss) Income Income Gain/(Loss) Income/(Loss) Gain/(Loss) Show less Asset Realized Recognized 1245 291 Ordinary Ordinary 1a $ 16,200 $ 16,200 $8,000 $ 8,200 1b 1c 2,200 0 2,200 2,200 1d 1e (3,600) (3,600) (3,600) 1f 1g 700 700 700 1h Totals $ 15,500 $ 15,500 $8,000 $ 0 $ 8,200 $ 2,200 $ (2,900) Reg Reg 2 Required: 1. Determine the gain/loss realized and recognized in the current year for each of these events provided above. determine whether the gain/loss recognized is 1231, capital, or ordinary. 2. From the recognized gains/losses determined in part 1, determine the net 1231 gain/loss, the net ordinary ga and the net capital gain/loss Moab will recognize on its tax return. Moab Incorporated also has $2,200 of nonrecaptured net 1231 losses from previous years. Complete this question by entering your answers in the tabs below. Req 1 Req 2 From the recognized gains/losses determined in part 1, determine the net 1231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Incorporated also has $2,200 of nonrecaptured net 1231 losses from previous years. (Do not round intermediate computations. Loss amounts should be indicated by a minus sign.) 1231 Netting Process: 1231 gain 1231 loss Net 1231 gain Nonrecaptured 1231 losses Net $1231 gain Ordinary Income: 1245 recapture 291 recapture Ordinary income Ordinary loss Ordinary income from 1231 netting Show less Total Capital Gains and Losses: Capital gain Capital loss Net capital gain < Req 1 Req 2 >