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 process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019: Date Placed in Asset Cost Service $ 150,00 Machinery 07/22/2019 Used delivery truck 48,eee 08/17/2019 *Not considered a luxury automobile. During 2019. Karane was very successful (and had no $179 limitations) and decided to acquire more assets in 2020 to increase its production capacity. These are the assets acquired during 2020: Office furniture 02/03/2019 1,568,000 Asset Computers & info. system Luxury autot Assembly equipment Storage building Cost $ 400,000 88,888 1,200, eee 700, 980 Date Placed in Service 03/31/2020 05/26/2820 08/15/2020 11/13/2020 tused 100% for business purposes. Karane generated taxable income in 2020 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.) (Leave no answer blank. Enter zero lf applicable. Input all the values as positive numbers.) b. Compute the maximum 2020 depreciation deductions, including 5179 expense (ignoring bonus depreciation). Description Cost Sec. 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction S S 0 S 2019 Assets Office furniture Machinery Used delivery truck 150,000 1,560,000 40,000 0 0 0 0 40,000 2020 Assets 0 0 0 0 Computers & Info. System Luxury Auto Assembly Equipment Storage Building 400,000 80,000 1,200,000 700.000 0 0 0 Total 2020 Cost Recovery S 4,130,000 S S 40,000 S 0 $ 0 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 process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019: Date Placed in Asset Cost Service $ 150,00 Machinery 07/22/2019 Used delivery truck 48,eee 08/17/2019 *Not considered a luxury automobile. During 2019. Karane was very successful (and had no $179 limitations) and decided to acquire more assets in 2020 to increase its production capacity. These are the assets acquired during 2020: Office furniture 02/03/2019 1,568,000 Asset Computers & info. system Luxury autot Assembly equipment Storage building Cost $ 400,000 88,888 1,200, eee 700, 980 Date Placed in Service 03/31/2020 05/26/2820 08/15/2020 11/13/2020 tused 100% for business purposes. Karane generated taxable income in 2020 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.) (Leave no answer blank. Enter zero lf applicable. Input all the values as positive numbers.) b. Compute the maximum 2020 depreciation deductions, including 5179 expense (ignoring bonus depreciation). Description Cost Sec. 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction S S 0 S 2019 Assets Office furniture Machinery Used delivery truck 150,000 1,560,000 40,000 0 0 0 0 40,000 2020 Assets 0 0 0 0 Computers & Info. System Luxury Auto Assembly Equipment Storage Building 400,000 80,000 1,200,000 700.000 0 0 0 Total 2020 Cost Recovery S 4,130,000 S S 40,000 S 0 $ 0
