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 2021. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2021: Date Placed in Asset Office furniture Machinery Used delivery truck* Cost $ 370,000 1,604,000 84,000 Service 02/03/2021 07/22/2021 08/17/2021 *Not considered a luxury automobile. During 2021, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2022 to increase its production capacity. These are the assets acquired during 2022: Date Placed in Asset Cost Service Computers and information system $ 444,000 03/31/2022 Luxury auto* Assembly equipment Storage building 91,000 1,420,000 800,000 05/26/2022 08/15/2022 11/13/2022 *Used 100% for business purposes. Karane generated taxable income in 2022 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. equired: Compute the maximum 2021 depreciation deductions, including $179 expense (ignoring bonus depreciation). Description Cost $179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction Office furniture $ Machinery Used delivery truck 370,000 1,604,000 84,000 $ 0 0 0 Total $ 2,058,000 $ 0 $ 0 $ 0 $ 0
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 2021. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2021: Date Placed in Asset Office furniture Machinery Used delivery truck* Cost $ 370,000 1,604,000 84,000 Service 02/03/2021 07/22/2021 08/17/2021 *Not considered a luxury automobile. During 2021, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2022 to increase its production capacity. These are the assets acquired during 2022: Date Placed in Asset Cost Service Computers and information system $ 444,000 03/31/2022 Luxury auto* Assembly equipment Storage building 91,000 1,420,000 800,000 05/26/2022 08/15/2022 11/13/2022 *Used 100% for business purposes. Karane generated taxable income in 2022 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. equired: Compute the maximum 2021 depreciation deductions, including $179 expense (ignoring bonus depreciation). Description Cost $179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction Office furniture $ Machinery Used delivery truck 370,000 1,604,000 84,000 $ 0 0 0 Total $ 2,058,000 $ 0 $ 0 $ 0 $ 0
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 13E
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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 2021. In the process
of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2021:
Cost
Date Placed in
Service
Asset
Office furniture
Machinery
Used delivery truck*
02/03/2021
$ 370,000
1,604,000
84,000
07/22/2021
08/17/2021
*Not considered a luxury automobile.
During 2021, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2022 to
increase its production capacity. These are the assets acquired during 2022:
Date Placed in
Asset
Cost
Service
Computers and information system
$444,000
03/31/2022
Luxury auto*
Assembly equipment
Storage building
91,000
1,420,000
800,000
05/26/2022
08/15/2022
11/13/2022
*Used 100% for business purposes.
Karane generated taxable income in 2022 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.
Required:
Compute the maximum 2021 depreciation deductions, including $179 expense (ignoring bonus depreciation).
Description
Cost
$179 Expense MACRS Basis
Current
MACRS
Depreciation
Total Cost
Recovery
Deduction
Office furniture
Machinery
$
Used delivery truck
370,000
1,604,000
84,000
$
0
0
0
Total
$ 2,058,000 $
0 $
0 $
0 $
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F27eecd69-d426-482a-a2a7-abff872f2360%2F748482b8-261c-4662-84e0-4846b55fa6eb%2Fb4604jy_processed.png&w=3840&q=75)
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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 2021. In the process
of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2021:
Cost
Date Placed in
Service
Asset
Office furniture
Machinery
Used delivery truck*
02/03/2021
$ 370,000
1,604,000
84,000
07/22/2021
08/17/2021
*Not considered a luxury automobile.
During 2021, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2022 to
increase its production capacity. These are the assets acquired during 2022:
Date Placed in
Asset
Cost
Service
Computers and information system
$444,000
03/31/2022
Luxury auto*
Assembly equipment
Storage building
91,000
1,420,000
800,000
05/26/2022
08/15/2022
11/13/2022
*Used 100% for business purposes.
Karane generated taxable income in 2022 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.
Required:
Compute the maximum 2021 depreciation deductions, including $179 expense (ignoring bonus depreciation).
Description
Cost
$179 Expense MACRS Basis
Current
MACRS
Depreciation
Total Cost
Recovery
Deduction
Office furniture
Machinery
$
Used delivery truck
370,000
1,604,000
84,000
$
0
0
0
Total
$ 2,058,000 $
0 $
0 $
0 $
0
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