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: Date Placed in Asset Office furniture Machinery Used delivery truck* Cost $ 330,000 1,596,000 76,000 Service 02/03/2020 07/22/2020 08/17/2020 *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 Cost Service Computers and information system $ 436,000 03/31/2021 Luxury autot Assembly equipment Storage building 89,000 1,380,000 700,000 05/26/2021 08/15/2021 11/13/2021 Used 100% for business purposes. Karane generated taxable income in 2021 of $1,777,500 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 a (Algo) Required: a. Compute the maximum 2020 depreciation deductions, including $179 expense (ignoring bonus depreciation). Description Office furniture Machinery Used delivery truck Total Cost 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction $ 0 0 0 0 $ 0 $ 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: Date Placed in Asset Office furniture Machinery Used delivery truck* Cost $ 330,000 1,596,000 76,000 Service 02/03/2020 07/22/2020 08/17/2020 *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 information system Cost $ 436,000 Service 03/31/2021 Luxury autof Assembly equipment Storage building 89,000 1,380,000 700,000 05/26/2021 08/15/2021 11/13/2021 Used 100% for business purposes. Karane generated taxable income in 2021 of $1,777,500 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 b (Algo) Required: b. Compute the maximum 2021 depreciation deductions, including $179 expense (ignoring bonus depreciation). Description 2020 Assets Office furniture Machinery Used delivery truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total Cost Section 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction $ 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 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: Date Placed in Asset Office furniture Machinery Used delivery truck* Cost $ 330,000 1,596,000 76,000 Service 02/03/2020 07/22/2020 08/17/2020 *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 information system Cost $ 436,000 Service 03/31/2021 Luxury autot Assembly equipment Storage building 89,000 1,380,000 700,000 05/26/2021 08/15/2021 11/13/2021 Used 100% for business purposes. Karane generated taxable income in 2021 of $1,777,500 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 Partc (Algo) Required: c. Compute the maximum 2021 depreciation deductions, including $179 expense, but now assume that Karane would like to take bonus depreciation. Description 2020 Assets Office Furniture Machinery Used Delivery Truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total Cost Section 179 Expense Bonus MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction $ 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 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: Date Placed in Asset Office furniture Machinery Cost $ 330,000 1,596,000 Service 02/03/2020 07/22/2020 Used delivery truck* 76,000 08/17/2020 *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 Service Asset Computers and information system Cost $ 436,000 03/31/2021 Luxury autot Assembly equipment Storage building 89,000 1,380,000 700,000 05/26/2021 08/15/2021 11/13/2021 +Used 100% for business purposes. Karane generated taxable Income in 2021 of $1,777,500 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 d (Algo) Required: d. Now assume that during 2021, Karane decides to buy a competitor's assets for a purchase price of $1,565,640. Compute the maximum 2021 cost recovery, Including $179 expense and bonus depreciation. Karane purchased the following assets for the lump- sum purchase price: (Round your final answers to the nearest whole dollar amount.) Date Placed in Asset Inventory Office furniture Machinery Patent Goodwill Building Land Cost $ 256,000 Service 09/15/2021 266,000 09/15/2021 286,000 09/15/2021 230,400 09/15/2021 5,240 09/15/2021 466,000 09/15/2021 56,000 09/15/2021 Assume that Karane takes the maximum section 179 expense for the Assembly Equipment. Description 2020 Assets Office Furniture Machinery Used Delivery Truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Inventory Office Furniture Machinery Patent Goodwill Building Land Cost Section 179 Expense Bonus MACRS Basis Current MACRS Depreciation Current Amortization Total Cost Recovery Deduction $ 0 0 0 0 0 0 0 0 0 0 0 0 Totals $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0