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 2020. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2020: Asset Office furniture Machinery Used delivery truck* *Not considered a luxury automobile. During 2020, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2021 to increase its production capacity. These are the assets acquired during 2021: Cost $ 300,000 1,590,000 70,000 Asset Computers and information system Luxury autot Assembly equipment Storage building Description Office furniture Machinery Used delivery truck Total $ Date Placed in Service 02/03/2020 07/22/2020 08/17/2020 tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1,770,000 for purposes of computing the §179 expense limitation. (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.) Cost $ 430,000 87,500 Required: a. Compute the maximum 2020 depreciation deductions, including §179 expense (ignoring bonus depreciation). Cost 1,350,000 700,000 Date Placed in Service 03/31/2021 05/26/2021 08/15/2021 11/13/2021 0 $ §179 Expense MACRS Basis 0 $ 0 Current MACRS Depreciation $ 0 Total Cost Recovery Deduction $ $ 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 2020. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2020: Asset Office furniture Machinery Used delivery truck* *Not considered a luxury automobile. During 2020, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2021 to increase its production capacity. These are the assets acquired during 2021: Cost $ 300,000 1,590,000 70,000 Asset Computers and information system Luxury autot Assembly equipment Storage building Description Office furniture Machinery Used delivery truck Total $ Date Placed in Service 02/03/2020 07/22/2020 08/17/2020 tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1,770,000 for purposes of computing the §179 expense limitation. (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.) Cost $ 430,000 87,500 Required: a. Compute the maximum 2020 depreciation deductions, including §179 expense (ignoring bonus depreciation). Cost 1,350,000 700,000 Date Placed in Service 03/31/2021 05/26/2021 08/15/2021 11/13/2021 0 $ §179 Expense MACRS Basis 0 $ 0 Current MACRS Depreciation $ 0 Total Cost Recovery Deduction $ $ 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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 19P
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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 2020. In the process
of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2020:
Asset
Office furniture.
Machinery
Used delivery truck*
*Not considered a luxury automobile.
During 2020, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2021 to
increase its production capacity. These are the assets acquired during 2021:
Cost
$ 300,000
1,590,000
70,000
Asset
Computers and information system
Luxury autot
Assembly equipment
Storage building
Description
Office furniture
Machinery
Used delivery truck
Total
$
Date Placed in
Service
02/03/2020
07/22/2020
08/17/2020
Cost
$430,000
tUsed 100% for business purposes.
Karane generated taxable income in 2021 of $1,770,000 for purposes of computing the §179 expense limitation.
(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.)
Cost
87,500
1,350,000
700,000
Required:
a. Compute the maximum 2020 depreciation deductions, including §179 expense (ignoring bonus depreciation).
Date Placed in
Service
03/31/2021
05/26/2021
08/15/2021
11/13/2021
0 $
§179 Expense MACRS Basis
0 $
0
Current
MACRS
Depreciation
$
Total Cost
Recovery
Deduction
$
0 $
0
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8809aa0b-e1b4-4563-9951-8d9ab7423f1e%2Fb1cbc418-17c2-4ce7-b9fc-b1a3148a7164%2Fxh65oiw_processed.png&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 2020. In the process
of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2020:
Asset
Office furniture.
Machinery
Used delivery truck*
*Not considered a luxury automobile.
During 2020, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2021 to
increase its production capacity. These are the assets acquired during 2021:
Cost
$ 300,000
1,590,000
70,000
Asset
Computers and information system
Luxury autot
Assembly equipment
Storage building
Description
Office furniture
Machinery
Used delivery truck
Total
$
Date Placed in
Service
02/03/2020
07/22/2020
08/17/2020
Cost
$430,000
tUsed 100% for business purposes.
Karane generated taxable income in 2021 of $1,770,000 for purposes of computing the §179 expense limitation.
(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.)
Cost
87,500
1,350,000
700,000
Required:
a. Compute the maximum 2020 depreciation deductions, including §179 expense (ignoring bonus depreciation).
Date Placed in
Service
03/31/2021
05/26/2021
08/15/2021
11/13/2021
0 $
§179 Expense MACRS Basis
0 $
0
Current
MACRS
Depreciation
$
Total Cost
Recovery
Deduction
$
0 $
0
0
0
0
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