Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2022. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2022: Date Placed in Service Asset Office furniture Machinery Used delivery truck* Cost $ 290,000 1,700,000 68,000 02/03/2022 07/22/2022 08/17/2022 *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: Asset Cost Computers and information system $ 428,000 87,000 1,340,000 900,000 Date Placed in Service 3/31/2023 05/26/2023 08/15/2023 11/13/2023 Luxury auto Assembly equipment Storage building *Used 100% for business purposes. Karane generated taxable income in 2023 of $1,767,500 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.
Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2022. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2022: Date Placed in Service Asset Office furniture Machinery Used delivery truck* Cost $ 290,000 1,700,000 68,000 02/03/2022 07/22/2022 08/17/2022 *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: Asset Cost Computers and information system $ 428,000 87,000 1,340,000 900,000 Date Placed in Service 3/31/2023 05/26/2023 08/15/2023 11/13/2023 Luxury auto Assembly equipment Storage building *Used 100% for business purposes. Karane generated taxable income in 2023 of $1,767,500 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.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 13E
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Transcribed Image Text:Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2022. In the process
of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2022:
Date Placed in
Service
Asset
Office furniture
Machinery
Used delivery truck*
Cost
$ 290,000
1,700,000
68,000
02/03/2022
07/22/2022
08/17/2022
*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:
Asset
Cost
Computers and information system
$ 428,000
87,000
1,340,000
900,000
Date Placed in
Service
3/31/2023
05/26/2023
08/15/2023
11/13/2023
Luxury auto
Assembly equipment
Storage building
*Used 100% for business purposes.
Karane generated taxable income in 2023 of $1,767,500 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.
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