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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 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: Asset Cost Date Placed in Service Office furniture$ 280,000 02/03/2020 Machinery Used delivery 1,586,000 07/22/2020 66,000 08/17/2020 truck "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 08/15/2021 1,330,000 tused 100% for business purposes. 800,000 11/13/2021 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: c. Compute the maximum 2021 depreciation deductions, including $179 expense, but now assume that Karane would ke to take bonus depreciation. Description 2020 Assets Office Furniture Machinery Used Delivery Truck 2021 Assets Cost Section 179 Expense Bonus MACRS Basis Current MACRS Total Cost Recovery Depreciation Deduction S 0 0 Computers and Information System Luxury Auto Assembly Equipment Storage Building Total S 0 $ 0 $ 05 05 0
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