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 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: Date Placed in Asset Office furniture Machinery Used delivery truck* Cost Service $ 150,000 1,560,000 40,000 02/03 07/22 08/17 *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: Date Placed in Asset Cost Service Computers and information system $ 400,000 03/31 Luxury auto* 80,000 05/26 Assembly equipment Storage building 1,200,000 700,000 08/15 11/13 *Used 100 percent for business purposes. A 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: a. Compute the maximum 2023 depreciation deductions, including §179 expense (ignoring bonus depreciation). Note: Apply the $179 deduction to the most expensive eligible asset first. Description Cost $179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction Office furniture $ 0 Machinery 0 Used delivery truck 0 Total $ 0 $ 0 $ 0 $ 0 $ 0
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 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: Date Placed in Asset Office furniture Machinery Used delivery truck* Cost Service $ 150,000 1,560,000 40,000 02/03 07/22 08/17 *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: Date Placed in Asset Cost Service Computers and information system $ 400,000 03/31 Luxury auto* 80,000 05/26 Assembly equipment Storage building 1,200,000 700,000 08/15 11/13 *Used 100 percent for business purposes. A 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: a. Compute the maximum 2023 depreciation deductions, including §179 expense (ignoring bonus depreciation). Note: Apply the $179 deduction to the most expensive eligible asset first. Description Cost $179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction Office furniture $ 0 Machinery 0 Used delivery truck 0 Total $ 0 $ 0 $ 0 $ 0 $ 0
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 13E
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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 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:
Date Placed in
Asset
Office furniture
Machinery
Used delivery truck*
Cost
Service
$ 150,000
1,560,000
40,000
02/03
07/22
08/17
*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:
Date Placed in
Asset
Cost
Service
Computers and information system $ 400,000
03/31
Luxury auto*
80,000
05/26
Assembly equipment
Storage building
1,200,000
700,000
08/15
11/13
*Used 100 percent for business purposes.
A
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:
a. Compute the maximum 2023 depreciation deductions, including §179 expense (ignoring bonus depreciation).
Note: Apply the $179 deduction to the most expensive eligible asset first.
Description
Cost
$179 Expense MACRS Basis
Current
MACRS
Depreciation
Total Cost
Recovery
Deduction
Office furniture
$
0
Machinery
0
Used delivery truck
0
Total
$
0
$
0
$
0
$
0
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F68ac909f-848b-4442-a8d9-88c34c673952%2F92957459-90f3-487c-8b71-72ab82e3a704%2F2buq1xw_processed.jpeg&w=3840&q=75)
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 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:
Date Placed in
Asset
Office furniture
Machinery
Used delivery truck*
Cost
Service
$ 150,000
1,560,000
40,000
02/03
07/22
08/17
*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:
Date Placed in
Asset
Cost
Service
Computers and information system $ 400,000
03/31
Luxury auto*
80,000
05/26
Assembly equipment
Storage building
1,200,000
700,000
08/15
11/13
*Used 100 percent for business purposes.
A
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:
a. Compute the maximum 2023 depreciation deductions, including §179 expense (ignoring bonus depreciation).
Note: Apply the $179 deduction to the most expensive eligible asset first.
Description
Cost
$179 Expense MACRS Basis
Current
MACRS
Depreciation
Total Cost
Recovery
Deduction
Office furniture
$
0
Machinery
0
Used delivery truck
0
Total
$
0
$
0
$
0
$
0
$
0
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