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: Date Placed in Asset Office furniture Machinery Used delivery truck* Cost $ 400,000 1,810,000 90,000 Service 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 Luxury auto* Assembly equipment Storage building *Used 100% for business purposes. Cost $ 450,000 92,500 1,450,000 Date Placed in Service 03/31/2023 05/26/2023 08/15/2023 800,000 11/13/2023 Karane generated taxable income in 2023 of $1,795,000 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 2022 depreciation deductions, including §179 expense (ignoring bonus depreciation). Note: Apply the $179 deduction to the most expensive eligible asset first. Round your final answers to nearest whole dollar. Description Office furniture Machinery Used delivery truck Total Cost $179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction
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: Date Placed in Asset Office furniture Machinery Used delivery truck* Cost $ 400,000 1,810,000 90,000 Service 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 Luxury auto* Assembly equipment Storage building *Used 100% for business purposes. Cost $ 450,000 92,500 1,450,000 Date Placed in Service 03/31/2023 05/26/2023 08/15/2023 800,000 11/13/2023 Karane generated taxable income in 2023 of $1,795,000 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 2022 depreciation deductions, including §179 expense (ignoring bonus depreciation). Note: Apply the $179 deduction to the most expensive eligible asset first. Round your final answers to nearest whole dollar. Description Office furniture Machinery Used delivery truck Total Cost $179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction
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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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:
Date Placed in
Asset
Office furniture
Machinery
Used delivery truck*
Cost
Service
$ 400,000
1,810,000
90,000
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
Luxury auto*
Assembly equipment
Storage building
Date Placed in
Service
03/31/2023
Cost
$ 450,000
92,500
1,450,000
800,000
05/26/2023
08/15/2023
11/13/2023
*Used 100% for business purposes.
Karane generated taxable income in 2023 of $1,795,000 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 2022 depreciation deductions, including §179 expense (ignoring bonus depreciation).
Note: Apply the $179 deduction to the most expensive eligible asset first. Round your final answers to nearest whole dollar.
Description
Office furniture
Machinery
Used delivery truck
Total
Cost
$179 Expense MACRS Basis
Current
MACRS
Depreciation
Total Cost
Recovery
Deduction
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