Required information Comprehensive Problem 10 76 (LO 10 1, LO 10 2, LO 10 3, LO 10 4, LO 10 5) (Algo) Skip to question 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 $ 180,000 02 03 2020 Machinery 1,566,000 07 22 2020 Used delivery truck 46,000 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 Asset Cost Date Placed in Service Computers and information system $ 406,000 03 31 2021 Luxury auto 81,500 05 26 2021 Assembly equipment 1,230,000 08 15 2021 Storage building 700,000 11 13 2021 Used 100 for business purposes Karane generated taxable income in 2021 of $1,740,000 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 )

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Required information Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (Algo) Skip to question [The following information applies to the

Required information

Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (Algo)

Skip to question

[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	$ 180,000	02/03/2020
Machinery	1,566,000	07/22/2020
Used delivery truck*	46,000	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:

Asset	Cost	Date Placed in Service
Computers and information system	$ 406,000	03/31/2021
Luxury auto	81,500	05/26/2021
Assembly equipment	1,230,000	08/15/2021
Storage building	700,000	11/13/2021

Used 100% for business purposes.

Karane generated taxable income in 2021 of $1,740,000 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.)