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 2019. In the proc of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019 Asset Office furniture Machinery Used delivery truck Cost $ 150,000 1,560,080 40,000 Date Placed in Service 02/03/2019 97/22/2019 08/17/2019 Not considered a luxury automobile, During 2019. Karane was very successful and had no 6179 limitations, and decided to acquire more assets in 2020 to Increase its production capacity. These are the assets acquired during 2020: Asset Corouters & info system Luxury autot Assembly equipment Storage building Cost $ 400,000 80,000 1,200,000 700,000 Date Placed in Service 03/31/2020 05/26/2020 08/15/2020 11/13/2020 tused 100% for business purposes Kan energted toxable income in 2020 of $1.732.500 for purposes of computing the $179 expense limitation (Utiel MACRS Table TO 5. a Leave no answer blank. Enter zero if Table 1 MACRS Half-Year Convention 20-Year Year 1 Year 2 Year 3 3.750% 7.219 6.677 Year 4 6.177 Year 5 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 44.45 32.00 24.49 18.00 9.50 14.81 19.20 17.49 14.40 8.55 741 11.52 12.49 11.52 7.70 11.52 8.93 9.22 6.93 5.76 8.92 7.37 6.23 8.93 6.55 3.90 4.46 6.55 5.90 6.56 5.91 6.55 5.90 3.28 5.91 5.713 Year 6 5.283 Year 7 Year 8 4.888 Year 9 Year 10 4.522 4.462 4.461 4.462 4.461 Year 11 5.90 3.91 5.90 4.461 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 5.91 2.95 461 4.462 1.461 4461 Year 21 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service charing the first quarter Depreciation Rate for Recovery Period 5 Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 1531 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 138 8.74 Year 7 8.75 Year 8 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23,47 Year 3 18.00 16.76 Year 4 11:37 Year 5 11:32 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service. doring the third quarter Depreciation Rate for Recovery Period 5. Year 7. Year Year 1 15.00 10.7192 Year 2 3400 2551 Year 3 15.22 O Search for anything Year 5 11.37 8.87 4.26 8.87 Year 6 Year 7 8.87 Year 8 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarte Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 8 5.53 TABLE 20 MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57 Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Year 8 764 Month 8 1.364% 3.636 3.636 3.637 3.636 3.637 3.636 3.637 TABLE 3 Residential Rental Property Mid Month Convention Straight Line-27.5 Years Month Property Placed in Service Month Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Year 1 3.485% 3.182% 2879% 2.576% 2.273% 1970% 1.667% Year 2.9 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 10 3.637 3.637 3.637 3,637 3.637 3 637 3.636 Year 11 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 12 3.637 3.637 3,637 3.637 3.637 3637 3636 Year 13 3.636 3636 3.636 3.636 3.636 3.636 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3,637 3.636 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 16 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 18 3,637 3.637 3.637 3.637 3.637 3.637 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 20 3.637 3.637 3.637 3.637 3.637 3.636 Year 21 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 12 3.637 3.632 3.637 3.637 3.632 3.637 3.636 Year 23 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 24 3.632 3.637 3637 3.637 3.631 3.637 3,636 Year 25 3.636 3.636 3.636 3.636 3.636 3636 3.637 Year 26 3.637 3.637 3.637 3.637 3,637 3,637 3.636 Year 27 3.636 9.636 3.636 3.636 3.636 3.636 3.637 Year 28 1.97 2.273 2.576 2.879 3.182 3.485 3.636 Year 29 0.152 3.636 3.637 3.636 3.637 3.636 3,637 3.636 Month 9 Month 10 Month 11 Month 12 1.061% 0.758% 0.455% 0.152% 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.632 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3636 3.636 3.636 0756 1.061 1.364 1.667 3637 3.637 3.636 3.097 3.636 3.637 3.636 0.455 3.636 Mouth 11 0397% Month 10 0.661% 3.175 3.175 3175 TABLE4 Nonresidential Real Property ML Month Convention Straight line 31.5 Years (for et placed in service before May 13, 1993) Month Property Placed in Service Month 1 Month 2 Months Month 4 Month 5 Month 6 Month 7 Month Month Year 1 3,042% 2.798% 251394 2.249% 1984% 1720% 1455% 1.190% 0.926% Year 27 3.175 3.175 3.175 3.175 3.175 3175 3.175 3.175 3173 Years 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 Year 3.175 3174 3.175 3.174 3.175 3.174 3.175 3.114 3.175 3.174 Year 10 3175 3.174 3.175 3.174 3.175 3.174 3.175 3174 Year 11 3.175 3.174 3.175 3.174 3.175 3 174 3175 3.174 3.175 Year 12 3.174 3.175 2174 3.175 3.1974 3175 3.174 3.175 3.174 3.175 Year 13 3.174 3.105 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 14 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 15 3.174 3.125 3.174 3.175 3.174 3.175 3.175 3.174 3.174 Year 16 3175 3.114 3.175 3.174 3.175 3 174 3.175 3.174 3.175 Year 17 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3174 Year 18 3.175 3.174 3.175 3.174 3.175 2.174 3.175 3.174 3.175 Year 19 3.174 3.175 3.174 3.175 3.174 3.175 3124 3.175 3.174 Year 20 3.175 3.174 3.175 3.174 3.175 3.174 3175 3.174 3.175 Year 21 3.174 3.175 3.174 3.175 3.174 3.173 3:174 3.175 Year 22 3.174 3.175 3.174 3.175 3.174 3175 3.174 3.125 3.174 3.175 3.174 3:175 3.174 15 3.174 3.175 3.174 3.115 3.174 Year24 3.135 3.174 3273 3.174 3:13 3114 3.173 3.174 3.105 Year 26 3.174 3.175 3.174 3.125 3.174 3175 14 3.173 Year 26 3.174 3.175 3.174 3.175 3194 3.075 3.174 3173 3174 Year 27 3.175 3.114 3.125 3.174 3.175 3.174 3.175 3.14 Year 15 3.174 3:173 3,114 3.175 3.174 3.155 3.114 3.175 Year 19 5.174 3.113 3124 3.175 3:14 3.175 3.174 3.115 3.174 3.175 3.174 Yer 30 3.13 3.174 313 3.174 2124 31175 3.174 3.173 Year 31 3.114 3.175 3.15 3174 31175 3174 3.113 3.174 Year33 1720 1954 2.249 2513 2.778 3.042 3.113 3,114 Year 30 3.175 0.132 0397 0.661 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.134 3.175 3.174 3.175 3.174 3.173 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 0.926 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.173 3.174 3.173 3.174 3.175 3.174 3.175 1190 Month 12 0.1325 3.175 3. 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3,173 3,124 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.114 3.175 3.174 1.455 Year 13 Month 10 Month 12 ABLE 5 Nonresidential Real Property Mid Manth Convention Straight Line 39 Year for assets placed in service on or after May 13, 1993) Month Property Placed in Service Month 1 Manth 2 Month 3 Month 4 Months Month 6 Month 7 Months Month 2 Year 1 2.461% 2247% 2.033% 1.819% 1.605% 1.391% 1.177% 0.963% 0.749% Year 2 39 2564 2564 2564 2.564 2564 2.564 2564 2.564 2564 Year 40 0, 107 0.321 0.535 0.749 0963 1177 1.391 1.605 1819 0.535% 2.564 2033 Month 11 0321% 2.564 2.247 0.107% 2564 2.461 EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year 1 2 3 4 and after 2020+ 10,100** 16.100 9,700 5.760 Year Placed in Service 2019 2018 10,100* 10,000* 16,100 16,000 9,700 9,600 5.760 5,760 2017 3,160* 5,100 3,050 1,875 *As of press date, the IRS had not released the 2020 limitations for automobiles, so throughout ti **$8,000 additional depreciation is allowed when bonus depreciation is claimed ($108(k) (2) (F) 04 a. Compute the maximum 2019 depreciation deductions, including 5179 expense (ignoring bonus depreciation) Description Office furniture Machinery Delivery truck Total 2019 Cost Recovery Current Total Cost COST 5179 Expense MACRS Basis MACRS Recovery Depreciation Deduction 150,000 $ 150,000 $ 21,4355 21,435 1,560,000 1,020,000 560,000 80,024 1.100,024 40,000 40,000 8,000 8,000 1,750,000 $ 1.020,000 $ 750,000 $ 109.459 S 1,129.459 S b. Compute the maximum 2020 depreciation deductions, including $179 expense (ignoring bonus depreciatio Description COSE Sec 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 2019 Assets Office furniture S 0 0 Machinery Used delivery truck 0 0 2020 Assets Computers & Info System Luxury Auto Assembly Equipment Storage Building 0 0 0 Total 2020 Cost Recovery S 0 S 0 S 0 S 0 S 0 c. Compute the maximum 2020 depreciation deductions, including $179 expense, but now assume that karane would like to take bonus depreciation as well Description COSE Sec. 179 Experise Bonus MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 2019 Assets Office Furniture Machinery Used Delivery Truck $ 0 0 0 0 2020 Assets Computers & Info System Luxury Auto Assembly Equipment Storage Building 0 0 0 Total 2020 Cost Recovery S 0 $ os OS 0 $ 0$ 0