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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, began business in
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 Service $ 370,000 1,604,000 84,000 02/03/2021 07/22/2021 08/17/2021 *Not considered a luxury automobile. During 2021, Karane was very successful (and had no 179 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 Asset Computers and information system Cost $ 444,000 Luxury auto* Assembly equipment 91,000 1,420,000 Storage building 03/31/2022 05/26/2022 08/15/2022 800,000 11/13/2022 *Used 100% for business purposes. Karane generated taxable income in 2022 of $1,787,500 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. c. Compute the maximum 2022 depreciation deductions, including $179 expense, but now assume that Karane would like to take bonus depreciation. Answer is not complete. Description 2021 Assets Office Furniture Machinery Used Delivery Truck Section Cost 179 Expense Bonus MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction $ 370,000 $ $ 370,000 $ 90,613 $ 90,613 1,604,000 0 554,000 84,000 0 84,000 135,675 26,880 135,675 26,880 2022 Assets Computers and Information System 444,000 0 444,000 444,000 Luxury Auto 91,000 0 0 Assembly Equipment 1,420,000 1,080,000 340,000 0 Storage Building 800,000 0 800,000 2,568 1,420,000 2,568 Total $ 4,813,000 $ 1,080,000 $ 784,000 $ 1,808,000 $ 255,736 $ 2,119,736
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