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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 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 $ 150,000 1,560,000 40,000 *Not considered a luxury automobile. Date Placed in Service 02/03/2022 07/22/2022 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: Date Placed in Service 03/31/2023 Asset Computers and information system Cost $ 400,000 Luxury auto* Assembly equipment Storage building 80,000 1,200,000 700,000 05/26/2023 08/15/2023 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 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 2023 depreciation deductions, including §179 expense (ignoring bonus depreciation). Description 2022 Assets Office furniture Machinery Used delivery truck Cost Section 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 150,000 $ 1,560,000 0 $ 150,000 1,020,000 40,000 0 40,000 0 1,020,000 0 2023 Assets Computers and Information System 400,000 0 Luxury Auto 80,000 0 Assembly Equipment 1,200,000 0 Storage Building 700,000 0 Total 4,130,000 1,020,000 $ 190,000 $ 0 $ 1,020,000

! 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 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 $ 150,000 1,560,000 40,000 *Not considered a luxury automobile. Date Placed in Service 02/03/2022 07/22/2022 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: Date Placed in Service 03/31/2023 Asset Computers and information system Cost $ 400,000 Luxury auto* Assembly equipment Storage building 80,000 1,200,000 700,000 05/26/2023 08/15/2023 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 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 2023 depreciation deductions, including §179 expense (ignoring bonus depreciation). Description 2022 Assets Office furniture Machinery Used delivery truck Cost Section 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 150,000 $ 1,560,000 0 $ 150,000 1,020,000 40,000 0 40,000 0 1,020,000 0 2023 Assets Computers and Information System 400,000 0 Luxury Auto 80,000 0 Assembly Equipment 1,200,000 0 Storage Building 700,000 0 Total 4,130,000 1,020,000 $ 190,000 $ 0 $ 1,020,000

SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 47P
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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 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 $ 150,000 1,560,000 40,000 *Not considered a luxury automobile. Date Placed in Service 02/03/2022 07/22/2022 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: Date Placed in Service 03/31/2023 Asset Computers and information system Cost $ 400,000 Luxury auto* Assembly equipment Storage building 80,000 1,200,000 700,000 05/26/2023 08/15/2023 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 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 2023 depreciation deductions, including §179 expense (ignoring bonus depreciation). Description 2022 Assets Office furniture Machinery Used delivery truck Cost Section 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 150,000 $ 1,560,000 0 $ 150,000 1,020,000 40,000 0 40,000 0 1,020,000 0 2023 Assets Computers and Information System 400,000 0 Luxury Auto 80,000 0 Assembly Equipment 1,200,000 0 Storage Building 700,000 0 Total 4,130,000 1,020,000 $ 190,000 $ 0 $ 1,020,000
Transcribed Image Text:! 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 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 $ 150,000 1,560,000 40,000 *Not considered a luxury automobile. Date Placed in Service 02/03/2022 07/22/2022 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: Date Placed in Service 03/31/2023 Asset Computers and information system Cost $ 400,000 Luxury auto* Assembly equipment Storage building 80,000 1,200,000 700,000 05/26/2023 08/15/2023 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 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 2023 depreciation deductions, including §179 expense (ignoring bonus depreciation). Description 2022 Assets Office furniture Machinery Used delivery truck Cost Section 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction 150,000 $ 1,560,000 0 $ 150,000 1,020,000 40,000 0 40,000 0 1,020,000 0 2023 Assets Computers and Information System 400,000 0 Luxury Auto 80,000 0 Assembly Equipment 1,200,000 0 Storage Building 700,000 0 Total 4,130,000 1,020,000 $ 190,000 $ 0 $ 1,020,000
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