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Required information [ The following information applies to the questions displayed below. ] Karane Enterprises, a calendar - year manufacturer based in College Station, Texas,
Required information
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 :
'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 :
'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:
Compute the maximum depreciation deductions, including $ expense ignoring bonus depreciation
Note: Apply the deduction to the most expensive eligible asset first. Round your final answers to nearest whole dollar.
b Compute the maximum depreclation deductions, Including $ expense ignoring bonus depreciation
Note: Round your final answers to nearest whole dollar.
Required:
c Compute the maximum depreciation deductions, including $ expense, but now assume that Karane would like to take
bonus depreciation.
Note: Round your final answers to nearest whole dollar.
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 lump
sum purchase price:
Note: Round your final answers to the nearest whole dollar amount.
Assume that Karane takes the maximum section expense for the Assembly Equipment.
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