Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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.

image text in transcribed
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 Astet Cost Service Office Furniture 5150,000 02/03/2019 Machinery 1,550,000 07/22/2019 Usod delivery truck 40,00 08/17/2019 "Not considered a luxury automobile. During 2019, Karane was very successful and had no 5179 limitations and decided to acquire more assets in 2020 to increase its production capacity. These are the assets acquired during 2020: Asset Computers & info. system Luxury autot Assembly equipment Storage building Cost $400,000 80,000 1,200, 700,000 Date Placed in Service 83/31/2828 65/26/2020 88/15/2020 11/13/2020 TUsed 100% for business purposes. Karane generated taxable income in 2020 of $1732.500 for purposes of computing the 5179 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.) b. Compute the maximum 2020 depreciation deductions, including $179 expense ignoring bonus depreciation. Answer is not complete. MACRO Description Cost Sec 17 Expense Current MACRS Depreciation Total Cost Recovery Deduction 0 5 2019 Assets Office future Machinery Used delivery truck 150,000 1.580.000 40.000 os 0 0 150.000 540.000 40.000 03 77.1433 77.143 2020 Assets Computers & Info System Lurury Auto Assembly Equipment Storage Building ooo D O $ 1,700.000 730.000 5 77,10 5 Total 2020 Cost Recovery 7.10

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions