Karane Enterprises, a calender year manufacturer based in College Station, Texas, began business in 2020. In the process of setting up the business, Karane has acquired various types of assets. Below is a ist of assets acquired during 2020: Date Placed in Service Cost Asset Office furnitures 280,0ee 02/03/2020 Machinery Used delivery trucke 1,586,000 07/22/2020 66,000 08/17/2020 "Not considered a luxury automobile. During 2020, Karane was very successful (and had no S179 limitations) and decided to acquire more assets in 2021 to Increase Its production capacity. These are the assets acquired during 202t Date Placed in Service Asset Computers and information system Luxury autot Assembly equipnent Storage building Cost $ 426,000 03/31/2021 86,500 05/26/2021 1,330,000 e8/15/2021 800,eee 11/13/2021 tused 100% for business purposes Karane generated taxable income in 2021 of S1765,000 for purposes of computing the S179 expense Imitation. (Use MACRS Table 1, Table 2. Table 3, Table 4, Table 5, and Exhibt 10-10) (Leave no answer blank. Enter zero If applicable. Input al the values as positive numbers) Required: b. Compute the maximum 2021 depreciation deductions, Including $179 expense gnoring bonus depreciation) Section 179 Expense MACRS Basis Current MACRS Depreciation Deduction Total Cost Recovery Description Cost 2020 Assets Office furniture Machinery Used delivery truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total 0S O oooO
Karane Enterprises, a calender year manufacturer based in College Station, Texas, began business in 2020. In the process of setting up the business, Karane has acquired various types of assets. Below is a ist of assets acquired during 2020: Date Placed in Service Cost Asset Office furnitures 280,0ee 02/03/2020 Machinery Used delivery trucke 1,586,000 07/22/2020 66,000 08/17/2020 "Not considered a luxury automobile. During 2020, Karane was very successful (and had no S179 limitations) and decided to acquire more assets in 2021 to Increase Its production capacity. These are the assets acquired during 202t Date Placed in Service Asset Computers and information system Luxury autot Assembly equipnent Storage building Cost $ 426,000 03/31/2021 86,500 05/26/2021 1,330,000 e8/15/2021 800,eee 11/13/2021 tused 100% for business purposes Karane generated taxable income in 2021 of S1765,000 for purposes of computing the S179 expense Imitation. (Use MACRS Table 1, Table 2. Table 3, Table 4, Table 5, and Exhibt 10-10) (Leave no answer blank. Enter zero If applicable. Input al the values as positive numbers) Required: b. Compute the maximum 2021 depreciation deductions, Including $179 expense gnoring bonus depreciation) Section 179 Expense MACRS Basis Current MACRS Depreciation Deduction Total Cost Recovery Description Cost 2020 Assets Office furniture Machinery Used delivery truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total 0S O oooO
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter17: Business Tax Credits And The Alternative Minimum Tax
Section: Chapter Questions
Problem 11P
Related questions
Question
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Transcribed Image Text:Required Information
(The following informetion applies to the questions displeyed below.)
Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2020.
In the process of setting up the business, Karane has acquired verlous types of assets. Below is a list of
assets acquired during 2020:
Date
Placed in
Service
Office furnitures 280,00e 82/03/2020
1,586, 000 07/22/2020
Asset
Cost
Machinery
Used delivery
66,000
08/17/2020
trucke
"Not considered a kuxury automoble.
During 2020, Karane was very successful (and had no S179 limitations) and decided to acquire more assets
In 2021 to Increase Its production capacity. These are the assets acquired during 2021
Date
Placed in
Service
Asset
Computers and
information system
Luxury autot
Assembly equipment
Storage building
Cost
$ 426,000 03/31/2021
86,500 05/26/2021
1,330,000 e8/15/2021
800,000 11/13/2021
tused 100% for business purposes.
Karane generated taxable income in 2021 of $1,765,000 for purposes of computing the $179 expense
Imitation. (Use MACRS Table 1, Table 2, Table 3, Table 4, Table 5, and Exhibit 10-10) (Leave no answer
blank. Enter zero If applicable. Input all the values as positive numbers.)
Required:
b. Compute the maximum 2021 depreciation deductions, Including S179 expense (gnoring bonus depreciation)
Section
179
Expense
Current
MACRS
Depreciation Deduction
Total Cost
Recovery
Description
MACRS
Basis
Cost
2020 Assets
Office furniture
Machinery
Used delivery truck
2021 Assets
Computers and
Information System
Luxury Auto
Assembly Equipment
Storage Building
Total
O oooo
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