Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (Algo) [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* *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: Cost $ 200,000 1,570,000 50,000 Asset Computers and information system Luxury auto* Assembly equipment Storage building *Used 100% for business purposes. Date Placed in Service 02/03/2021 07/22/2021 08/17/2021 Required: Cost $ 410,000 82,500 1,250,000 900,000 Karane generated taxable income in 2022 of $1,745,000 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. Comprehensive Problem 10-76 Part a (Algo) Date Placed in Service 03/31/2022 05/26/2022 08/15/2022 11/13/2022
Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (Algo) [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* *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: Cost $ 200,000 1,570,000 50,000 Asset Computers and information system Luxury auto* Assembly equipment Storage building *Used 100% for business purposes. Date Placed in Service 02/03/2021 07/22/2021 08/17/2021 Required: Cost $ 410,000 82,500 1,250,000 900,000 Karane generated taxable income in 2022 of $1,745,000 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. Comprehensive Problem 10-76 Part a (Algo) Date Placed in Service 03/31/2022 05/26/2022 08/15/2022 11/13/2022
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required Information
Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (Algo)
[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*
*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:
Cost
$ 200,000
1,570,000
50,000
Date Placed in
Service
02/03/2021
07/22/2021
08/17/2021
Description
Asset
Computers and information system
Luxury auto*
Assembly equipment
Storage building
*Used 100% for business purposes.
Karane generated taxable income in 2022 of $1,745,000 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.
Office furniture
Machinery
Used delivery truck
Total
Cost
$ 410,000
82,500
Comprehensive Problem 10-76 Part a (Algo)
Cost
1,250,000
900,000
Required:
Compute the maximum 2021 depreciation deductions, including §179 expense (ignoring bonus depreciation).
Date Placed in
Service
03/31/2022
05/26/2822
08/15/2022
11/13/2022
$179 Expense MACRS Basis
Current
MACRS
Depreciation
Total Cost
Recovery
Deduction](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9f13de0d-8ee2-4557-ab0a-aa1afa2929f4%2Fc8548001-e187-4801-9821-30073f46669a%2Fslfysk_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (Algo)
[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*
*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:
Cost
$ 200,000
1,570,000
50,000
Date Placed in
Service
02/03/2021
07/22/2021
08/17/2021
Description
Asset
Computers and information system
Luxury auto*
Assembly equipment
Storage building
*Used 100% for business purposes.
Karane generated taxable income in 2022 of $1,745,000 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.
Office furniture
Machinery
Used delivery truck
Total
Cost
$ 410,000
82,500
Comprehensive Problem 10-76 Part a (Algo)
Cost
1,250,000
900,000
Required:
Compute the maximum 2021 depreciation deductions, including §179 expense (ignoring bonus depreciation).
Date Placed in
Service
03/31/2022
05/26/2822
08/15/2022
11/13/2022
$179 Expense MACRS Basis
Current
MACRS
Depreciation
Total Cost
Recovery
Deduction
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