Homework Help is Here – Start Your Trial Now!
Business
Accounting
b. Compute the maximum 2022 depreciation deductions, including §179 expense (ignoring bonus depreciation).

b. Compute the maximum 2022 depreciation deductions, including §179 expense (ignoring bonus depreciation).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
b. Compute the maximum 2022 depreciation deductions, including $179 expense (ignoring bonus depreciation). Current MACRS Depreciation Description 2021 Assets Office furniture Machinery Used delivery truck 2022 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total $ Cost 150,000 1,560,000 40,000 Section 179. Expense MACRS Basis 1,040,000 $ 150,000 $ 540,000 40,000 400,000 80,000 160,000 700,000 Total Cost Recovery Deduction- 36,735 $ 132,246 12,800 80,000 10,100 36,735 132,246 12,800 400,000 80,000 1,200,000 22,864 700,000 2,247 $ 4,130,000 $1,040,000 $2,070,000 $ 296,992 $1,336,992 80,000 10,100 1,062,864 2,247
Transcribed Image Text:b. Compute the maximum 2022 depreciation deductions, including $179 expense (ignoring bonus depreciation). Current MACRS Depreciation Description 2021 Assets Office furniture Machinery Used delivery truck 2022 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total $ Cost 150,000 1,560,000 40,000 Section 179. Expense MACRS Basis 1,040,000 $ 150,000 $ 540,000 40,000 400,000 80,000 160,000 700,000 Total Cost Recovery Deduction- 36,735 $ 132,246 12,800 80,000 10,100 36,735 132,246 12,800 400,000 80,000 1,200,000 22,864 700,000 2,247 $ 4,130,000 $1,040,000 $2,070,000 $ 296,992 $1,336,992 80,000 10,100 1,062,864 2,247
13 m Required [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: Asset office furniture Machinery Used delivery truck" Cost $ 150,000 1,560,000 40,000 Date Placed in Service 02/03/2021 07/22/2021 08/17/2021 "Not considered a luxury automobile. During 2021, Karane was very successful (and had no 5179 limitations) and decided to acquire more assets in 2022 to Increase its production capacity. These are the assets acquired during 2022: Cost $ 400,000 80,000 Date Placed in Service 03/31/2022 05/26/2022 08/15/2022 11/13/2022 Asset Computers and information system Luxury auto Assembly equipment Storage building "Used 100% for business purposes. Karane generated taxable income in 2022 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. 1,200,000 700,000
Transcribed Image Text:13 m Required [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: Asset office furniture Machinery Used delivery truck" Cost $ 150,000 1,560,000 40,000 Date Placed in Service 02/03/2021 07/22/2021 08/17/2021 "Not considered a luxury automobile. During 2021, Karane was very successful (and had no 5179 limitations) and decided to acquire more assets in 2022 to Increase its production capacity. These are the assets acquired during 2022: Cost $ 400,000 80,000 Date Placed in Service 03/31/2022 05/26/2022 08/15/2022 11/13/2022 Asset Computers and information system Luxury auto Assembly equipment Storage building "Used 100% for business purposes. Karane generated taxable income in 2022 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. 1,200,000 700,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS