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* Cost $ 200,000 1,570,000 50,000 Asset Computers and information system Luxury auto* Assembly equipment Storage building *Used 100% for business purposes. *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 Office furniture Machinery Used delivery truck Total Date Placed in Service 02/03/2021 Karane generated taxable income in 2022 of $1,745,000 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. Comprehensive Problem 10-76 Part a (Algo) Cost 07/22/2021 08/17/2021 Required: Compute the maximum 2021 depreciation deductions, including §179 expense (ignoring bonus depreciation). Cost $410,000 82,500 $ 200,000 $ 1,570,000✔ 50,000✔ $ 1,820,000 1,250,000 900,000 S Answer is complete but not entirely correct. §179 Expense Date Placed in Service 03/31/2022 05/26/2022 08/15/2022 11/13/2022 0 0x 0 0 $ MACRS Basis Current MACRS Depreciation 200,000 $ 540,000x 50,000✔ $ 790,000 $ Total Cost Recovery Deduction 36,735 $ 132,246 X 12,800 X 181,781 36,735 132,246 12,800 181,781
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* Cost $ 200,000 1,570,000 50,000 Asset Computers and information system Luxury auto* Assembly equipment Storage building *Used 100% for business purposes. *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 Office furniture Machinery Used delivery truck Total Date Placed in Service 02/03/2021 Karane generated taxable income in 2022 of $1,745,000 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. Comprehensive Problem 10-76 Part a (Algo) Cost 07/22/2021 08/17/2021 Required: Compute the maximum 2021 depreciation deductions, including §179 expense (ignoring bonus depreciation). Cost $410,000 82,500 $ 200,000 $ 1,570,000✔ 50,000✔ $ 1,820,000 1,250,000 900,000 S Answer is complete but not entirely correct. §179 Expense Date Placed in Service 03/31/2022 05/26/2022 08/15/2022 11/13/2022 0 0x 0 0 $ MACRS Basis Current MACRS Depreciation 200,000 $ 540,000x 50,000✔ $ 790,000 $ Total Cost Recovery Deduction 36,735 $ 132,246 X 12,800 X 181,781 36,735 132,246 12,800 181,781
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject : Accounting
Transcribed Image Text: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*
Cost
$ 200,000
1,570,000
50,000
*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:
Asset
Computers and information system
Luxury auto*
Assembly equipment
Storage building
*Used 100% for business purposes.
Karane generated taxable income in 2022 of $1,745,000 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.
Description
Date Placed in
Service
02/03/2021
07/22/2021
08/17/2021
Office furniture
Machinery
Used delivery truck
Total
Comprehensive Problem 10-76 Part a (Algo)
Cost
$ 410,000
82,500
Required:
Compute the maximum 2021 depreciation deductions, including §179 expense (ignoring bonus depreciation).
Cost
1,250,000
900,000
$ 200,000 S
1,570,000✔
50,000✔
$ 1,820,000 S
Date Placed in
Service
03/31/2022
05/26/2022
08/15/2022
11/13/2022
> Answer is complete but not entirely correct.
§179
Expense
Current
MACRS
Depreciation
MACRS
Basis
0 $
0x
0♥
0 $ 790,000
200,000
540,000 X
50,000✔
$
$
36,735 ×
Total Cost
Recovery
Deduction
$
132,246 X
12,800 X
181,781 $
36,735
132,246
12,800
181,781
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