! Required Information [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 Cost Service Office furniture $ 150,00 22/03/2020 Machinery 1,560,000 07/22/2020 Used delivery truck 40,000 88/17/2020 *Not considered a luxury automobile. During 2020. Karane was very successful and had no 5179 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 $ 480, eee 03/31/2021 Luxury autot 80,000 05/26/2021 Assembly equipment 1,290, Bee 08/15/2821 Storage building 780, eee 11/13/2021 Used 100% for business purposes. Karane generated taxable income in 2021 of $1,732,500 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.) Required: b. Compute the maximum 2021 depreciation deductions, including $179 expense (ignoring bonus depreciation). Section 179 Current Total Cost Description Cost MACRS Basis MACRS Recovery Expense Depreciation Deduction 2020 Assets Office furniture s 0 Machinery 0 Used delivery truck 2021 Assets Computers and Information System 0 Luxury Auto 0 Assembly Equipment 0 Storage Building Total 0 s 0 0 0 09 0 09 0 Required: d. Now assume that during 2021, Karane decides to buy a competitor's assets for a purchase price of $1.350.000. 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.) Asset Inventory Office furniture Machinery Patent Goodwill Building Land Cost $ 220, Bee 230, eee 250, eee 198, eee 2,888 430, eee 20,888 Date Placed in Service 09/15/2021 09/15/2021 09/15/2821 09/15/2021 09/15/2821 09/15/2821 09/15/2821 Assume that karane takes the maximum section 179 expense for the Assembly Equipment. Description Cost Section 179 Expense Bonus MACRS Basis Current MACRS Depreciation Current Amortization Total Cost Recovery Deduction 2020 Assets $ OOO 0 OOO 0 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 Totals 0 0 0 0 OOOOO 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $
