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 2021. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2021 Date Placed in Asset office furniture Machinery Used delivery truck Cost $ 150,000 1,560,000 40,000 Service 02/03/2021 07/22/2021 08/17/2021 "Not considered a luxury automobile. i had no 5179 limitations) and decided to acquire more assets in 2022 to During 2021, Karane was very successful (and had no 5179 limitations) and decided to acquire more assets in 2022 to increase its production capacity. These are the assets acquired during 2022 Date Placed in Service 03/31/2022 Asset Computers and information system Cost $ 400,000 Luxury auto Assembly equipment 80,000 1,200,000 05/26/2022 08/15/2022 Storage building 700,000 11/13/2022 "Used 100% for business purposes. Karane generated taxable income in 2022 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) Note: Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers. Required: a. Compute the maximum 2021 depreciation deductions, including $179 expense (ignoring bonus depreciation). Answer is complete but not entirely correct. Current Total Cost Description Cost $179 Expense MACRS Basis MACRS Depreciation Recovery Deduction Office furniture Machinery Used delivery truck 150,000 1,560,000 40,000 $ 0 S 150,000 21,435 $ 21,435 1,020,000 540,000 77,166 1,097,166 0 40.000 8,000 8,000 Total $ 1.750,000 $ 1,020.000 $ 730,000 $ 106.601 $ 1,126,601 Required: b. Compute the maximum 2022 depreciation deductions, including $179 expense (ignoring bonus depreciation). Answer is complete but not entirely correct. Description 2021 Assets Office furniture Machinery Used delivery truck Cost Section 179 MACRS Basis Expense Current MACRS Depreciation Total Cost Recovery Deduction S 150,000 S 0 $ 150,000 $ 36,735 S 36,735 1,560,000 00 540,000 132,246 132,246 40,000 00 40,000 12,800 12,800 2022 Assets Computers and Information 400,000 0 400,000 80,000 80,000 System Luxury Auto 80,000 0 80,000 10,100 10,100 Assembly Equipment 1,200,000 1,040,000 160,000 22,864 1,062,864 Storage Building 700,000 0 700,000 2.247 2,247 Total $ 4,130.000 $ 1,040,000 $ 2,070,000 296.992 $ 1,336,992 8 " c. Compute the maximum 2022 depreciation deductions, including $179 expense, but now assume that Karane would like to take bonus depreciation. Answer is complete but not entirely correct. Description Cost Section 179 Current Bonus MACRS Basis MACRS Total Cost Recovery Expense Depreciation Deduction 2021 Assets Office Furniture 150,000 $ 05 36,735 $ 0$ 150,000 s 36,735 Machinery 1,560,000 O 00 09 560,000 137,144 137,144 Used Delivery Truck 40,000 00 100 40,000 12.800 ( 12.800 2022 Assets Computers and Information System 400,000 00 400,000 00 00 400,000 Luxury Auto 80,000 8,000 72,000 10,000 18,000 Assembly Equipment 1,200,000 1,040,000 160,000 00 1,200,000 Storage Building 700,000 09 00 700,000 2,247 2247 Total $ 4,130,000 $ 1,040,000 $ 568,000 $1,522,000 198,926 $ 1,806,926 of 5 d. Now assume that during 2022, Karane decides to buy a competitor's assets for a purchase price of $1,350,000. Compute the maximum 2022 cost recovery, including $179 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. Asset Inventory Office furniture Machinery Patent Date Placed in Service 09/15/2022 Cost $ 220,000 230,000 09/15/2022 250,000 09/15/2022 198,000 09/15/2022 2,000 09/15/2022 430,000 09/15/2022 20,000 09/15/2022 Goodwill Building Land Assume that Karane takes the maximum section 179 expense for the Assembly Equipment Required RIVAL Description 2021 Assets Section Current Cost MACRS 179 Expense Bonus MACRS Basis Depreciation Current Amortization Total Cost Recovery Deduction Office Furniture $ 150,000 s 0$ 150,000 s 36,735 O 36,735 Machinery 1,560,000 00 560,000 137,144 137,144 Used Delivery Truck 40,000 00 00 40,000 128,000 128,000 2022 Assets Computers and Information System 400,000 00 400,000 00 00 400,000 Luxury Auto 80,000 00 8,000 72,000 10,000 18,000 Assembly Equipment 1,200,000 1,040,000 160,000 DO 1,200,000 Storage Building 700,000 00 00 700,000 22,477 22,477 Inventory 220,000 00 09 09 00 0 Office Furniture Machinery Patent Goodwill Building 230,000 00 230,000 00 00 230,000 250.000 00 250,000 00 00 250,000 198,000 00 00 198,000 4,400 198,000 2,000 09 09 2.000 44 44 430,000 E 00 DO 430,000 3,221 3.221 Land Totals 20,000 00 $ 5,480,000 $ 1,040,000 $ 2,152,000 $ 1,048,000 $ 342,021 S 0 $ 2,623,621