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[The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2022. In
[The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2022. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2022: Cost Date Placed in Service Asset Office furniture Machinery Used delivery truck $ 150,000 1,560,000 40,000 02/03/2022 07/22/2022 08/17/2022 *Not considered a luxury automobile. During 2022, Karane was very successful (and had no 179 limitations) and decided to acquire more assets in 2023 to increase its production capacity. These are the assets acquired during 2023: Asset Computers and information system $ 400,000 Luxury auto Assembly equipment Storage building Date Placed in Cost Service 03/31/2023 80,000 1,200,000 700,000 05/26/2023 08/15/2023 11/13/2023 "Used 100% for business purposes. Karane generated taxable income in 2023 of $1,732,500 for purposes of computing the 5179 expense limitation. (Use MACRS Table 1. Table 2. Table 3. Table 4. Table 5, and Exhibit 10-10.) Note: Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers. Required: a. Compute the maximum 2022 depreciation deductions, including $179 expense (ignoring bonus depreciation). Note: Apply the $179 deduction to the most expensive eligible asset first. Description Office furniture Machinery Used delivery truck Total Current Total Cost Cost 5179 Expense MACRS Basis MACRS Depreciation Recovery Deduction
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