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Required information Skip to question [ The following information applies to the questions displayed below. ] Karane Enterprises, a calendar - year manufacturer based in
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The following information applies to the questions displayed below.
Karane Enterprises, a calendaryear manufacturer based in College Station, Texas, began business in In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during :
Asset Cost Date Placed in Service
Office furniture $
Machinery
Used delivery truckNote:
Note:Not considered a luxury automobile.
During Karane was very successful and had no limitations and decided to acquire more assets in to increase its production capacity. These are the assets acquired during :
Asset Cost Date Placed in Service
Computers and information system $
Luxury autoNote:
Assembly equipment
Storage building
Note:Used for business purposes.
Karane generated taxable income in of $ for purposes of computing the expense limitationUse MACRS Table Table Table Table Table and Exhibit
Note: Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.
Required:
d Now assume that during Karane decides to buy a competitor's assets for a purchase price of $ Compute the maximum cost recovery, including expense and bonus depreciation. Karane purchased the following assets for the lumpsum purchase price:
Note: Round your final answers to the nearest whole dollar amount.
Asset Cost Date Placed in Service
Inventory $
Office furniture
Machinery
Patent
Goodwill
Building
Land
Assume that Karane takes the maximum section expense for the Assembly Equipment.
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