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 Office furniture $ 150,000 Machinery 1,560,000 Used delivery truck* 40,000 *Not considered a luxury automobile. Date Placed in Service 02/03/2020 07/22/2020 08/17/2020 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 & information system Luxury autot Assembly equipment Storage building Cost $ 400,000 80,000 1,200,000 700,000 Date Placed in Service 03/31/2021 05/26/2021 08/15/2021 11/13/2021 tUsed 100% for business purposes. Karane generated taxable income in 2021 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 if applicable. Input all the values as positive numbers.) Required: a. Compute the maximum 2020 depreciation deductions, including $179 expense (ignoring bonus depreciation). Section Description Cost 179 MACRS Basis Expense $ 0 1,040,000 Office furniture Machinery Used delivery truck Total $ 150,000 1,560,000 40,000 $ 1,750,000 $ 150,000 520,000 40,000 $ 710,000 Current MACRS Depreciation $ 21,435 74,308 8,000 $ 103,743 Total Cost Recovery Deduction $ 21,435 1,114,308 8,000 $ 1,143,743 $ 1,040,000 OMB No. 1545-0172 2020 Attachment Sequence No. 179 Identifying number(xxx-xx-xxxx) Form 4562 Depreciation and Amortization (Including Information on Listed Property) Department of the Treasury Attach to your tax return. Internal Revenue Service (99) Go to www.irs.gov/Form 4562 for instructions and the latest information. Name(s) shown on return Business or activity to which this form relates Karane Enterprises Parti Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. Maximum amount (see instructions) 2 Total Cost of section 179 property placed in service (see instructions) 3 Threshold cost of section 179 property before reduction in limitation (see instructions) 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter 0 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter-O-. If married filing separately, see instructions (b) Cost (business use (a) Description of property (c) Elected cost only)) 1 2 3 4 5 0 6 0 0 0 7 Listed property. Enter the amount from line 29 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 8 9 Tentative deduction. Enter the smaller of line 5 or line 8 9 10 Carryover of disallowed deduction from line 13 of your 2019 Form 4562 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. see instructions. 11 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 12 13 Carryover of disallowed deduction to 2021. Add lines 9 and 10, less line 12 13 Note: Do not use Part II or Part III below for listed property. Instead, use Part V. Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property. see instructions.) 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year. See instructions 14 15 Property subject to section 168(/1) election 15 16 Other depreciation (including ACRS) 16 MACRO vepreciation (DONT Llciue usted properly. See lisu UCLIONIS.) Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2020 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here 17 Section B-Assets Placed in Service During 2020 Tax Year Using the General Depreciation System (a) Classification of property (b) Month and year placed in service (c) Basis for depreciation (business/investment use only-See instructions) (d) Recovery period (e) Convention (1) Method (9) Depreciation deduction 19a 3-year property b 5-year property c 7-year property d 10-year property e 15-year property f 20-year property g 25-year property 25 years S/L 27.5 years MM S/L h Residential rental property 27.5 years MM S/L 39 years MM S/L i Nonresidential real property MM S/L Section C-Assets Placed in Service During 2020 Tax Year Using the Alternative Depreciation System S/L 20a Class life b 12-year 12 years S/L c 30-year 30 years MM S/L 40 years MM d 40-year S/L Part IV Summary (See instructions) 21 Listed property. Enter amount from line 28 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations-see instructions 21 22