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 2022AssetOffice furnitureMachineryUsed delivery truck*Not considered a luxury automobile.Cost$ 370,0001,604,00084,000Date Placed inService02/03/202207/22/202208/17/2022During 2022, Karane was very successful (and had no $179 limitations) and decided to acquire more assets in 2023 toincrease its production capacity. These are the assets acquired during 2023:Cost$ 444,00091,000AssetComputers and information systemLuxury autoAssembly equipmentStorage building"Used 100% for business purposes.Karane generated taxable income in 2023 of $1,787,500 for purposes of computing the $179 expense limitation. (UseMACRS 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.Date Placed inService03/31/202305/26/20231,420,000800,00008/15/202311/13/2023Required:Compute the maximum 2022 depreciation deductions, including 5179 expense (ignoring bonus depreciation)Note: Round your final answers to nearest whole dollar.

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 $ 370,000 1,604,000 84,000 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: Asset Computers and Information system Luxury auto Assembly equipment Storage building Cost $ 444,000 91,000 1,420,000 800,000 Date Placed in Service 03/31/2023 05/26/2023 08/15/2023 11/13/2023 *Used 100% for business purposes. Karane generated taxable income in 2023 of $1,787,500 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: Compute the maximum 2022 depreciation deductions, including $179 expense (ignoring bonus depreciation)

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 $ 370,000 1,604,000 84,000 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: Asset Computers and Information system Luxury auto Assembly equipment Storage building Cost $ 444,000 91,000 1,420,000 800,000 Date Placed in Service 03/31/2023 05/26/2023 08/15/2023 11/13/2023 Used 100% for business purposes. Karane generated taxable income in 2023 of $1,787,500 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: Compute the maximum 2022 depreciation deductions, including $179 expense (ignoring bonus depreciation)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 Asset Office furniture Machinery Used delivery truck* Cost Service $ 400,000 1,810,000 90,000 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 Computers and information system Luxury auto* Assembly equipment Storage building Date Placed in Service 03/31/2023 Cost $ 450,000 92,500 1,450,000 800,000 05/26/2023 08/15/2023 11/13/2023 *Used 100% for business purposes. Karane generated taxable income in 2023 of $1,795,000 for purposes of computing the $179 expense limitation. (Use MACRS Table 1, Table 2, Table 3, Table 4,…
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