*Used 100% for business purposes. Karane generated taxable income in 2022 of $1,792,500 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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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(FED X
to.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmidc
AS i
M Question 8 - ACCT3231_U1 AS X +
Required information
[The following information applies to the questions displayed below.]
(a)
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:
Asset
Office furniture
Machinery
Used delivery truck*
*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:
F2
#
Asset
Computers and information system
Luxury auto*
Assembly equipment
Storage building
*Used 100% for business purposes.
Karane generated taxable income in 2022 of $1,792,500 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.
F3
Cost
$ 390,000
1,608,000
88,000
Required:
Compute the maximum 2021 depreciation deductions, including §179 expense (ignoring bonus depreciation).
(1)
$
Date Placed in
Service
02/03/2021
07/22/2021
08/17/2021
Q Search
F4
Cost
$ 448,000
92,000
1,440,000
700,000
%
< Prev
Saved
Date Placed in
Service
03/31/2022
05/26/2022
08/15/2022
11/13/2022
F5
8
S
8 9 10
PRE
F6
A
F7
&
www
12 of 14 #
PrtScn
F8
*
Next >
Home
F9
End
F10
PgUp
Transcribed Image Text:(FED X to.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmidc AS i M Question 8 - ACCT3231_U1 AS X + Required information [The following information applies to the questions displayed below.] (a) 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: Asset Office furniture Machinery Used delivery truck* *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: F2 # Asset Computers and information system Luxury auto* Assembly equipment Storage building *Used 100% for business purposes. Karane generated taxable income in 2022 of $1,792,500 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. F3 Cost $ 390,000 1,608,000 88,000 Required: Compute the maximum 2021 depreciation deductions, including §179 expense (ignoring bonus depreciation). (1) $ Date Placed in Service 02/03/2021 07/22/2021 08/17/2021 Q Search F4 Cost $ 448,000 92,000 1,440,000 700,000 % < Prev Saved Date Placed in Service 03/31/2022 05/26/2022 08/15/2022 11/13/2022 F5 8 S 8 9 10 PRE F6 A F7 & www 12 of 14 # PrtScn F8 * Next > Home F9 End F10 PgUp
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