6 Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2022. In the processof setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2022: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:AssetAsset,Computers and information systemLuxury auto*Assembly equipmentStorage building"Used 100% for business purposes.Karane generated taxable income in 2023 of $1,795,000 for purposes of computing the §179 expense limitation. (UseMACRS Table 1, Table 2, Table 3, Table 4, Table 5, and Exhibit 10-10.)InventoryOffice furnitureMachineryPatentGoodwillBuildingLandCost$ 400,0001,810,00090,000d. Now assume that during 2023, Karane decides to buy a competitor's assets for a purchase price of $1,649,500. Compute themaximum 2023 cost recovery, including §179 expense and bonus depreciation. Karane purchased the following assets for the lump-sum purchase price:Note: Round your final answers to the nearest whole dollar amount.Description2022 AssetsOffice FurnitureMachineryUsed Delivery Truck2023 AssetsMachineryPatentGoodwillBuildingLandTotalsDate Placed inService02/03/202207/22/202208/17/2022Cost$ 270,000280,000300,000243,0006,500480,00070,000Computers and Information SystemLuxury AutoAssembly EquipmentStorage BuildingInventoryOffice FurnitureCost$ 450,00092,5001,450,000800,000Date Placed inService09/15/202309/15/202309/15/202309/15/202309/15/202309/15/202309/15/2023CostDate Placed inService03/31/202305/26/202308/15/202311/13/2023$ 400,000 $1,810,00090,000450,00092,500Section 179Expense1,450,000800,000270,000280,000300,000243,0006,500480,00070,000S 6,742,000 $00001,160,00000000000$Bonus000450,0008,0001,450,0000001,020,0000000MACRS Basis$400,000 $810,00090,000084,5000800,0000280,000300,00000480,000CurrentMACRSDepreciation01,160,000 $ 2,928,000 $3,244,500 $97,96028,8000000CurrentAmortization126,760 S0 S0000000005,400144Total CostRecoveryDeduction005,54497,960028,800450,0008,0002,610,0000001,020,0005,40014400$ 4,220,304

Section 179 expense refers to the deduction to the taxpayers on the cost of certain property…

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: Asset Office furniture Machinery Used delivery truck Cost $ 400,000 1,810,000 90,000 Date Placed in Service 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: Date Placed in Service 03/31/2023 05/26/2023 08/15/2023 11/13/2023 Asset, Computers and information system Luxury auto Assembly equipment Storage building "Used 100% for business purposes. Karane generated taxable income in 2023 of $1,795,000 for purposes of computing the $179 expense limitation. (Use Cost $ 450,000 92,500 1,450,000 800,000

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: Asset Office furniture Machinery Used delivery truck Cost $ 400,000 1,810,000 90,000 Date Placed in Service 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: Date Placed in Service 03/31/2023 05/26/2023 08/15/2023 11/13/2023 Asset, Computers and information system Luxury auto Assembly equipment Storage building "Used 100% for business purposes. Karane generated taxable income in 2023 of $1,795,000 for purposes of computing the $179 expense limitation. (Use Cost $ 450,000 92,500 1,450,000 800,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 75P

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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: Cost $ 150,000 1,560,000 40,000 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: Date Placed in Service 02/03/2021 07/22/2021 08/17/2021 Asset Computers and information system Luxury auto* Assembly equipment Storage building *Used 100% for business purposes. Cost $ 400,000 80,000 1,200,000 700,000 Date Placed in Service 03/31/2022 05/26/2822 08/15/2022 11/13/2022 Karane generated taxable income in 2022 of $1,732,500 for purposes…
karane enterprises, a calendar year manufadturer based in college station, texas, begain 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. asset: office furniture, cost: $ 150,000, date placed in service 02/ Used delivery truck, cost $40,000, date placed in service 08/17/2022. 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: computers and information system, cost $400,000, date placed in service 03/31/2023. Luxury auto *, cost $80,000, date placed in service 05/26/2023, Assembly equipment, cost $1,200,000 date placed in service 08/15/2023, storage building cost $700,000, date placed in service 11/13/2023. *Used 100% for business purposes. Karane generated taxable income in 2023 of $ 1,732, 500 for purposes of computing the 179 expense…
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[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: Date Placed in Asset Office furniture Machinery Used delivery truck* Cost $ 370,000 1,604,000 84,000 Service 02/03/2021 07/22/2021 08/17/2021 *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: Date Placed in Asset Cost Computers and information system $ 444,000 Luxury auto* Assembly equipment Storage building 91,000 1,420,000 800,000 Service 03/31/2022 05/26/2022 08/15/2022 11/13/2022 *Used 100% for business purposes. Karane generated taxable income in 2022 of $1,787,500 for purposes of computing the…
I need help please James Inc. purchased the following assets in February 2022 for a total price of $2,900,000. Below are the assets with their corresponding fair market value: Asset Description Fair Market Value Equipment $650,000 Office Furniture 1,190,000 Computer Equipment 960,000 Required: Calculate the depreciation in 2022 for the office furniture assuming they elect to use section 179 on the office furniture.
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Pota Berhad acquired a building costing RM2,400,000 on 1 May 2013 with anestimated useful life of 50 years. The building was occupied as theheadquarters for its business operations in Georgetown, Penang. In a recentboard meeting in January 2023, the directors had agreed to move thecompany’s headquarters to a new building located in Shah Alam, Selangor.Since then the company has been actively seeking a buyer. In addition,advertisements have also been placed to speed up the sale of the building.The building in Nilai has been vacated in October 2023. It was estimated thatproperty brokerage fee of RM45,000 and legal fee of RM26,000 will beincurred in order to sell the building.Required:Explain whether as at 31 December 2023, the building in Nilai can beclassified as a non-current asset held for sale in accordance with MFRS 5Non-current Asset Held for Sale and Discontinued Operations. Please give explanation in details with example