Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2023. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2023: Asset Cost Date Placed in Service Office furniture $ 150,000 02/03 Machinery 1,560,000 07/22 Used delivery truck*Note: 40,000 08/17 *Note:Not considered a luxury automobile. During 2023, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2024 to increase its production capacity. These are the assets acquired during 2024: Asset Cost Date Placed in Service Computers and information system $ 400,000 03/31 Luxury auto*Note: 80,000 05/26 Assembly equipment 1,200,000 08/15 Storage building 700,000 11/13 *Note:Used 100 percent for business purposes. Karane generated taxable income in 2024 of $1,732,500 for purposes of computing the §179 expense limitation. (Use MACRS Table 1, Table 2, Table 3, Table 4, Table 5, and Exhibit 10-10.) Note: Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers. Required b. Compute the maximum 2024 depreciation deductions, including §179 expense (ignoring bonusdepreciation).$ $ $ $Description CostSection 179ExpenseMACRS BasisCurrentMACRSDepreciationTotal CostRecoveryDeduction2023 AssetsOffice furniture 150,000 0 150,000 36,735Machinery 1,560,000 0 400,000 97,960Used delivery truck 40,000 0 40,000 12,8002024 AssetsComputers and Information System 400,000 cant figure out the basis and depercation for thisLuxury Auto 80,000 - 0 - 80,000 - 12,400Assembly Equipment 1,200,000 -1,200,000 -0 -0Storage Building 700,000 - 0 - 700,000 - 2,247Total$ 36,73597,96012,800012,4001,200,0002,247$ 4,130,000 $ 1,200,000 $ 1,370,000 $ 162,142 $ 1,362,142
Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2023. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2023:
| Asset | Cost | Date Placed in Service |
|---|---|---|
| Office furniture | $ 150,000 | 02/03 |
| Machinery | 1,560,000 | 07/22 |
| Used delivery truck*Note: | 40,000 | 08/17 |
*Note:Not considered a luxury automobile.
During 2023, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2024 to increase its production capacity. These are the assets acquired during 2024:
| Asset | Cost | Date Placed in Service |
|---|---|---|
| Computers and information system | $ 400,000 | 03/31 |
| Luxury auto*Note: | 80,000 | 05/26 |
| Assembly equipment | 1,200,000 | 08/15 |
| Storage building | 700,000 | 11/13 |
*Note:Used 100 percent for business purposes.
Karane generated taxable income in 2024 of $1,732,500 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.
Required
b. Compute the maximum 2024
depreciation).
$ $ $ $
Description Cost
Section 179
Expense
MACRS Basis
Current
MACRS
Depreciation
Total Cost
Recovery
Deduction
2023 Assets
Office furniture 150,000 0 150,000 36,735
Machinery 1,560,000 0 400,000 97,960
Used delivery truck 40,000 0 40,000 12,800
2024 Assets
Computers and Information System 400,000 cant figure out the basis and depercation for this
Luxury Auto 80,000 - 0 - 80,000 - 12,400
Assembly Equipment 1,200,000 -1,200,000 -0 -0
Storage Building 700,000 - 0 - 700,000 - 2,247
Total
$ 36,735
97,960
12,800
0
12,400
1,200,000
2,247
$ 4,130,000 $ 1,200,000 $ 1,370,000 $ 162,142 $ 1,362,142
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