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 ofassets acquired during 2021:AssetOffice furnitureMachineryUsed delivery truck**Not considered a luxury automobile.During 2021, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in2022 to increase its production capacity. These are the assets acquired during 2022:AssetComputers and informationsystemLuxury auto*Assembly equipmentStorage buildingCost$ 280,0001,586,00066,000Description2021 AssetsOffice furnitureMachineryUsed delivery truck2022 AssetsDate Placedin Service02/03/202107/22/202108/17/2021Computers and Information SystemLuxury AutoAssembly EquipmentStorage BuildingTotal*Used 100% for business purposes.Karane generated taxable income in 2022 of $1,765,000 for purposes of computing the §179 expenselimitation. (Use MACRS Table 1, Table 2, Table 3, Table 4, Table 5, and Exhibit 10-10.)Note: Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.Cost$ 426,00086,5001,330,000800,000Required:b. Compute the maximum 2022 depreciation deductions, including §179 expense (ignoring bonus depreciation).CostDate Placedin Service03/31/202205/26/202208/15/202211/13/2022Section 179ExpenseMACRS BasisCurrentMACRSDepreciationTotal CostRecoveryDeduction

Under IRS, section 179 allows businesses to claim a deduction for expenses related to tangible…

Answered: Compute the maximum 2022 depreciation…

Business

Accounting

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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