Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

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: Cost Date Placed in Service Office furniture$ 280,000 02/03/2020 Asset Machinery Used delivery truck* 1,586,000 07/22/2020 66,000 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 Computers and information system Luxury autot Assembly equipment Storage building Cost Date Placed in Service $ 426,000 03/31/2021 86,500 05/26/2021 1,330,000 08/15/2021 800,000 11/13/2021 tused 100% for business purposes. Karane generated taxable income in 2021 of $1,765,000 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.) Required: b. Compute the maximum 2021 depreciation deductions, including $179 expense (gnoring bonus depreciation) Description Cost Section 179 Expense MACRS Basis Current MACRS Total Cost Recovery Depreciation Deduction 2020 Assets Office furniture $ Machinery Used delivery truck 000 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total S 0 $ 0 $ 0S 0 $ 00000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions