karane enterprises, a calendar year manufadturer basedin college station, texas, begain business in 2022. Inthe process of setting up the business, Karane hasacquired various types of assets. Below is a list of assetsacquired during 2022. asset: office furniture, cost: $150,000, date placed in service 02/ Used delivery truck,cost $40,000, date placed in service 08/17/2022.During 2022, karane was very successful (and had no179 limitations) and decided to acquire more assets in2023 to increase its production capacity. These are theassets acquired during 2023: Asset: computers andinformation system, cost $400,000, date placed inservice 03/31/2023. Luxury auto *, cost $80,000, dateplaced in service 05/26/2023, Assembly equipment,cost $1,200,000 date placed in service 08/15/2023,storage building cost $700,000, date placed in service11/13/2023. *Used 100% for business purposes.Karane generated taxable income in 2023 of $1,732, 500 for purposes of computing the 179 expenselimitation. Compute the maximum 2022 depreciationdeductions, including 179 expense (ignoring bonusdepreciation) What is the cost, 179 expense, MACRSBasis, Current MACRS Depreciation and Total costrecovery deduction of the Office furniture, Machinary,Used delivery

Depreciation -Depreciation is an accounting method used to allocate the cost of tangible assets over…

limitation. Compute the maximum 2022 depreciation deductions, including 179 expense (ignoring bonus depreciation) What is the cost, 179 expense, MACRS Basis, Current MACRS Depreciation and Total cost recovery deduction of the Office furniture, Machinary, Used delivery

limitation. Compute the maximum 2022 depreciation deductions, including 179 expense (ignoring bonus depreciation) What is the cost, 179 expense, MACRS Basis, Current MACRS Depreciation and Total cost recovery deduction of the Office furniture, Machinary, Used delivery

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 2BD

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Question

karane enterprises, a calendar year manufadturer based
in college station, texas, begain 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, cost: $
150,000, date placed in service 02/ Used delivery truck,
cost $40,000, date placed in service 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: Asset: computers and
information system, cost $400,000, date placed in
service 03/31/2023. Luxury auto *, cost $80,000, date
placed in service 05/26/2023, Assembly equipment,
cost $1,200,000 date placed in service 08/15/2023,
storage building cost $700,000, date placed in service
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. Compute the maximum 2022 depreciation
deductions, including 179 expense (ignoring bonus
depreciation) What is the cost, 179 expense, MACRS
Basis, Current MACRS Depreciation and Total cost
recovery deduction of the Office furniture, Machinary,
Used delivery

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