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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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 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:
Description
Asset
Computers and information system
Luxury auto
Assembly equipment
storage building
"Used 100% for business purposes.
Karane generated taxable income in 2022 of $1735,000 for purposes of computing the $179 expense limitation. (Use
MACRS Table 1. Table 2. Table 3. Table 4. Table 5. and Exhib10:10)
Note: Leave no answer blank. Enter zero if applicable. input all the values es positive numbers.
2021 Assets
Office mure
Machinery
cost
$ 160,000
1,562,000
42,000
Used delivery truck
2022 Assets
Date Placed in
Service
02/03/2021
07/22/2021
04/17/2021
Computers and information System
Lunuty Auto
Assembly Equipment
Storage Building
Total
Required:
b. Compute the maximum 2022 depreciation deductions, including $170 expense egnoring bonus depreciation)
Cost
Cost
$ 402,000
30,500
1,210,000
000,000
Date Placed in
Service
03/31/2022
05/26/2022
06/15/2002
11/13/2022
Section 179
Expense
MACRS Basis
Current
MACRS
Depreciation
Total Cost
Recovery
Deduction](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d4559b7-32ee-431d-b856-210240e86126%2F14ca662f-cc68-409e-bfe7-d235a5f04b48%2Fsq1ujdg_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 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:
Description
Asset
Computers and information system
Luxury auto
Assembly equipment
storage building
"Used 100% for business purposes.
Karane generated taxable income in 2022 of $1735,000 for purposes of computing the $179 expense limitation. (Use
MACRS Table 1. Table 2. Table 3. Table 4. Table 5. and Exhib10:10)
Note: Leave no answer blank. Enter zero if applicable. input all the values es positive numbers.
2021 Assets
Office mure
Machinery
cost
$ 160,000
1,562,000
42,000
Used delivery truck
2022 Assets
Date Placed in
Service
02/03/2021
07/22/2021
04/17/2021
Computers and information System
Lunuty Auto
Assembly Equipment
Storage Building
Total
Required:
b. Compute the maximum 2022 depreciation deductions, including $170 expense egnoring bonus depreciation)
Cost
Cost
$ 402,000
30,500
1,210,000
000,000
Date Placed in
Service
03/31/2022
05/26/2022
06/15/2002
11/13/2022
Section 179
Expense
MACRS Basis
Current
MACRS
Depreciation
Total Cost
Recovery
Deduction
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