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