FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
Asset
Office furniture
Machinery
Used delivery truck
*Not considered a luxury automobile.
Cost
$ 370,000
1,604,000
84,000
Date Placed in
Service
02/03/2022
07/22/2022
08/17/2022
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:
Cost
$ 444,000
91,000
Asset
Computers and information system
Luxury auto
Assembly equipment
Storage building
"Used 100% for business purposes.
Karane generated taxable income in 2023 of $1,787,500 for purposes of computing the $179 expense limitation. (Use
MACRS Table 1. Table 2. Table 3. Table 4. Table 5, and Exhibit 10-10)
Note: Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.
Date Placed in
Service
03/31/2023
05/26/2023
1,420,000
800,000
08/15/2023
11/13/2023
Required:
Compute the maximum 2022 depreciation deductions, including 5179 expense (ignoring bonus depreciation)
Note: Round your final answers to nearest whole dollar.
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Transcribed Image Text: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 Asset Office furniture Machinery Used delivery truck *Not considered a luxury automobile. Cost $ 370,000 1,604,000 84,000 Date Placed in Service 02/03/2022 07/22/2022 08/17/2022 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: Cost $ 444,000 91,000 Asset Computers and information system Luxury auto Assembly equipment Storage building "Used 100% for business purposes. Karane generated taxable income in 2023 of $1,787,500 for purposes of computing the $179 expense limitation. (Use MACRS Table 1. Table 2. Table 3. Table 4. Table 5, and Exhibit 10-10) Note: Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers. Date Placed in Service 03/31/2023 05/26/2023 1,420,000 800,000 08/15/2023 11/13/2023 Required: Compute the maximum 2022 depreciation deductions, including 5179 expense (ignoring bonus depreciation) Note: Round your final answers to nearest whole dollar.
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