[The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2018. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2018: Asset Office furniture Machinery Used delivery truck Cost $ 150,000 1,560,000 40,000 Date Placed in Service 02/03/2018 07/22/2018 08/17/2018 "Not considered a luxury automobile. During 2018, Karane was very successful (and had no 8179 limitations) and decided to acquire more assets in 2019 to increase its production capacity. These are the assets acquired during 2019: $ Asset Computers & info. system Luxury autot Assembly equipment Storage building Cost 400,000 80,000 1,200,000 700,000 Date Placed in Service 03/31/2019 05/26/2019 08/15/2019 11/13/2019 Used 100% for business purposes. Karane generated taxable income in 2019 of $1,732,500 for purposes of computing the $179 expense. (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.) a. Compute the maximum 2018 depreciation deductions, including 5179 expense (ignoring bonus depreciation), Description Cost $179 Expense MACRS Basis Current MACRS Depreciation Total Depreciation Deduction $ 0 Office furniture Machinery Delivery truck Totals 0 0 $ 0 $ 0 $ 0 $ b. Compute the maximum 2019 depreciation deductions, including $179 expense (ignoring bonus depreciation). Description Cost Sec. 179 Expense MACRS Basis Current MACRS Depreciation Total Depreciation Deduction 0 2018 Assets Office furniture Machinery Used delivery truck 0 0 0 2019 Assets Computers & Info. System Luxury Auto Assembly Equipment Storage Building 0 0 0 Totals $ 0 $ 0 S 0 $ 0 Form 4562 OMB No 1545-0172 Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. Go to www.lrs.goviForm4562 for Instructions and the latest Information Business or activity to which this form relates 2018 Department of the Treasury Internal Revenue Service (90) Names) shown on retum Aachment Sequence No. 179 Identifying number one.) Part 1 Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part 1 1 Maximum amount (se instructions) 2 Total cost of section 179 property placed in service (see instructions) 3 Threshold cost of section 17 property before reduction in limitation (see instructions) 4 Reduction is limitation. Subtract line from line 2. Wzore or less enter- 6 Dolar limitation for tax year. Subtractine 4 from Ino 1. If zero or loss, enterIt married fling separately, so instructions (a) Description of property (b) Cost (business USO (c) Elected cost only) 2 3 4 5 0 0 6 31 0 0 O 7 Listed property. Enter the amount from line 29 8 Total elected cost of section 179 property. Add amounts in Column (cl. lines 6 and 7 8 9 Tentative deduction Enter the smaler of line 5 or line B 9 10 Carryover of disallowed deduction from line 13 of your 2017 Form 4582 10 11 Business income limitation Enter the smaller of business income (not less than zor) or in 5. see instructions 11 12 Section 170 expense deduction Add lines and 10, but dont enter more than 11 12 13 Carryover of slowed deduction to 2019. Add lines 9 and 10. less line 12 13 Note: Do not use Part II or Part Iil 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 properly placed in service during the tax you. See instructions 15 Property subject to section 16 (1) election 15 10 Oberderation andluding ACRS) 16 Part 1 MACRS Depreciation (Don't include listed property See Instructions) Part III MACRS Depreciation (Don't include listed property. See instructions.) Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2018 18 you are electing to group any assets placed in service during the tax year into one or more general se accounts, check here (9) Depreciation deduction Section B-Assets Placed in Service During 2018 Tax Year Using the General Depreciation System (c) Basis for (6) Month and year depreciation (a) Classification of property (business investment placed in service (d) Recovery period (a) Convention in Method use only See instructions) 19a 3-year property b 5-year property c7-year property d 10-year property 15-year property 1 20-year property 9 25-year property S/L h Residential rental MM S/L property MM S/L i Nonresidential real MM S/L property MM S/L Section C. Assets Placed in Service During 2018 Tax Year Using the Alternative Depreciation System 20a Class life S/L b 12-year 12 yrs. SIL 30y MM S/L d 40 you 40 yrs. MM S/L Part IV Summary (See instructions) 21 Lished property. Errer amount from ine 20 22 Total Add amounts from line 12, Ines 14 through 17. lines 19 and 20 in columna endine 21. Enter here and on the appropriate lines of your retum. Partnerships and corporationsstructions 23 Forssets shown above and placed in service during the current year, enter the portion of the basis tribulat 10 section 2014 CONS 232 For Paperwork Reduction Act Notice, se separate Instruction Cat No. 12906N 25 yrs 275 yrs 275 yrs 30 yrs 30 yrs. 21 22 Form 4582 (2018) [The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2018. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2018: Asset Office furniture Machinery Used delivery truck Cost $ 150,000 1,560,000 40,000 Date Placed in Service 02/03/2018 07/22/2018 08/17/2018 "Not considered a luxury automobile. During 2018, Karane was very successful (and had no 8179 limitations) and decided to acquire more assets in 2019 to increase its production capacity. These are the assets acquired during 2019: $ Asset Computers & info. system Luxury autot Assembly equipment Storage building Cost 400,000 80,000 1,200,000 700,000 Date Placed in Service 03/31/2019 05/26/2019 08/15/2019 11/13/2019 Used 100% for business purposes. Karane generated taxable income in 2019 of $1,732,500 for purposes of computing the $179 expense. (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.) a. Compute the maximum 2018 depreciation deductions, including 5179 expense (ignoring bonus depreciation), Description Cost $179 Expense MACRS Basis Current MACRS Depreciation Total Depreciation Deduction $ 0 Office furniture Machinery Delivery truck Totals 0 0 $ 0 $ 0 $ 0 $ b. Compute the maximum 2019 depreciation deductions, including $179 expense (ignoring bonus depreciation). Description Cost Sec. 179 Expense MACRS Basis Current MACRS Depreciation Total Depreciation Deduction 0 2018 Assets Office furniture Machinery Used delivery truck 0 0 0 2019 Assets Computers & Info. System Luxury Auto Assembly Equipment Storage Building 0 0 0 Totals $ 0 $ 0 S 0 $ 0 Form 4562 OMB No 1545-0172 Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. Go to www.lrs.goviForm4562 for Instructions and the latest Information Business or activity to which this form relates 2018 Department of the Treasury Internal Revenue Service (90) Names) shown on retum Aachment Sequence No. 179 Identifying number one.) Part 1 Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part 1 1 Maximum amount (se instructions) 2 Total cost of section 179 property placed in service (see instructions) 3 Threshold cost of section 17 property before reduction in limitation (see instructions) 4 Reduction is limitation. Subtract line from line 2. Wzore or less enter- 6 Dolar limitation for tax year. Subtractine 4 from Ino 1. If zero or loss, enterIt married fling separately, so instructions (a) Description of property (b) Cost (business USO (c) Elected cost only) 2 3 4 5 0 0 6 31 0 0 O 7 Listed property. Enter the amount from line 29 8 Total elected cost of section 179 property. Add amounts in Column (cl. lines 6 and 7 8 9 Tentative deduction Enter the smaler of line 5 or line B 9 10 Carryover of disallowed deduction from line 13 of your 2017 Form 4582 10 11 Business income limitation Enter the smaller of business income (not less than zor) or in 5. see instructions 11 12 Section 170 expense deduction Add lines and 10, but dont enter more than 11 12 13 Carryover of slowed deduction to 2019. Add lines 9 and 10. less line 12 13 Note: Do not use Part II or Part Iil 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 properly placed in service during the tax you. See instructions 15 Property subject to section 16 (1) election 15 10 Oberderation andluding ACRS) 16 Part 1 MACRS Depreciation (Don't include listed property See Instructions) Part III MACRS Depreciation (Don't include listed property. See instructions.) Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2018 18 you are electing to group any assets placed in service during the tax year into one or more general se accounts, check here (9) Depreciation deduction Section B-Assets Placed in Service During 2018 Tax Year Using the General Depreciation System (c) Basis for (6) Month and year depreciation (a) Classification of property (business investment placed in service (d) Recovery period (a) Convention in Method use only See instructions) 19a 3-year property b 5-year property c7-year property d 10-year property 15-year property 1 20-year property 9 25-year property S/L h Residential rental MM S/L property MM S/L i Nonresidential real MM S/L property MM S/L Section C. Assets Placed in Service During 2018 Tax Year Using the Alternative Depreciation System 20a Class life S/L b 12-year 12 yrs. SIL 30y MM S/L d 40 you 40 yrs. MM S/L Part IV Summary (See instructions) 21 Lished property. Errer amount from ine 20 22 Total Add amounts from line 12, Ines 14 through 17. lines 19 and 20 in columna endine 21. Enter here and on the appropriate lines of your retum. Partnerships and corporationsstructions 23 Forssets shown above and placed in service during the current year, enter the portion of the basis tribulat 10 section 2014 CONS 232 For Paperwork Reduction Act Notice, se separate Instruction Cat No. 12906N 25 yrs 275 yrs 275 yrs 30 yrs 30 yrs. 21 22 Form 4582 (2018)