AssetOffice furnitureMachineryUsed delivery truck**Not considered a luxury automobile.During 2022, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2023 toincrease its production capacity. These are the assets acquired during 2023:Cost$ 190,0001,600,00048,000Description2022 AssetsOffice furnitureMachineryUsed delivery truck2023 AssetsAssetComputers and information systemLuxury auto*Assembly equipmentStorage building*Used 100% for business purposes.Karane generated taxable income in 2023 of $1,742,500 for purposes of computing the §179 expense limitation. (UseMACRS Table 1, Table 2, Table 3, Table 4, Table 5, and Exhibit 10-10.)Note: Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.Computers and Information SystemLuxury AutoAssembly EquipmentStorage BuildingTotalvate Placed inService02/03/202207/22/202208/17/2022Required:b. Compute the maximum 2023 depreciation deductions, including §179 expense (ignoring bonus depreciation).Note: Round your final answers to nearest whole dollar.$Cost$ 408,00082,0001,240,000800,000CostSection 179ExpenseDate Placed inService03/31/202305/26/202308/15/202311/13/2023408,000 $$ 408,000 $MACRS Basis0 $0 $CurrentMACRSDepreciation0 $0 $Total CostRecoveryDeduction0 $0 $00000000S

Taxable income refers to the income gained by an entity on which the authorised government…

Answered: During 2022, Karane was very suc essiu…

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During 2022, Karane was very suc essiu (a ncrease its production capacity. These are

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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Question

Asset
Office furniture
Machinery
Used delivery truck*
*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:
Cost
$ 190,000
1,600,000
48,000
Description
2022 Assets
Office furniture
Machinery
Used delivery truck
2023 Assets
Asset
Computers and information system
Luxury auto*
Assembly equipment
Storage building
*Used 100% for business purposes.
Karane generated taxable income in 2023 of $1,742,500 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.
Computers and Information System
Luxury Auto
Assembly Equipment
Storage Building
Total
vate Placed in
Service
02/03/2022
07/22/2022
08/17/2022
Required:
b. Compute the maximum 2023 depreciation deductions, including §179 expense (ignoring bonus depreciation).
Note: Round your final answers to nearest whole dollar.
$
Cost
$ 408,000
82,000
1,240,000
800,000
Cost
Section 179
Expense
Date Placed in
Service
03/31/2023
05/26/2023
08/15/2023
11/13/2023
408,000 $
$ 408,000 $
MACRS Basis
0 $
0 $
Current
MACRS
Depreciation
0 $
0 $
Total Cost
Recovery
Deduction
0 $
0 $
0
0
0
0
0
0
0
0
S

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