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Required information Comprehensive Problem 02-76 (LO 02-1, LO 02-2, LO 02-3, LO 02-4, LO 02-5) (Algo) [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: Date Placed in Service 02/03/2020 07/22/2020 08/17/2020 Asset Cost $ 180, 000 1, 566, 000 46, 000 *Not considered a luxury automobile. Office furniture Machinery Used delivery truck* 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: Date Placed in Service 03/31/2021 05/26/2021 08/15/2021 11/13/2021 Asset Cost Computers and information system Luxury autof Assembly equipment Storage building $ 406, 000 81, 500 1, 230, 000 700, 000 tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1,740,000 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.) Comprehensive Problem 02-76 Part a (Algo) Required: 1. Compute the maximum 2020 depreciation deductions, including $179 expense (ignoring bonus depreciation). Current Total Cost Description Cost $179 Expense MACRS Basis MACRS Recovery Deduction Depreciation Office furniture 180,000 s of s 180,000 Machinery 1,566,000 1,000,000 566,000 1,000,000 Used delivery truck 46,000 46,000 Total $ 1,792,000S 1,000,000 S 792,000 S 1,000,000

Required information Comprehensive Problem 02-76 (LO 02-1, LO 02-2, LO 02-3, LO 02-4, LO 02-5) (Algo) [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: Date Placed in Service 02/03/2020 07/22/2020 08/17/2020 Asset Cost $ 180, 000 1, 566, 000 46, 000 *Not considered a luxury automobile. Office furniture Machinery Used delivery truck* 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: Date Placed in Service 03/31/2021 05/26/2021 08/15/2021 11/13/2021 Asset Cost Computers and information system Luxury autof Assembly equipment Storage building $ 406, 000 81, 500 1, 230, 000 700, 000 tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1,740,000 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.) Comprehensive Problem 02-76 Part a (Algo) Required: 1. Compute the maximum 2020 depreciation deductions, including $179 expense (ignoring bonus depreciation). Current Total Cost Description Cost $179 Expense MACRS Basis MACRS Recovery Deduction Depreciation Office furniture 180,000 s of s 180,000 Machinery 1,566,000 1,000,000 566,000 1,000,000 Used delivery truck 46,000 46,000 Total $ 1,792,000S 1,000,000 S 792,000 S 1,000,000

Intermediate Accounting: Reporting And Analysis
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 8P
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! Required information Comprehensive Problem 02-76 (LO 02-1, LO 02-2, LO 02-3, LO 02-4, LO 02-5) (Algo) [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: Date Placed in Asset Office furniture Service 02/03/2020 07/22/2020 08/17/2020 Cost $ 180, 000 Machinery Used delivery truck* *Not considered a luxury automobile. 1, 566, 000 46, 000 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: Date Placed in Asset Service Computers and information system Luxury autot Assembly equipment Storage building Cost $ 406, 000 81, 500 1, 230, 000 700, 000 03/31/2021 05/26/2021 08/15/2021 11/13/2021 tused 100% for business purposes. Karane generated taxable income in 2021 of $1,740,000 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.) Comprehensive Problem 02-76 Part a (Algo) Required: a. Compute the maximum 2020 depreciation deductions, including $179 expense (ignoring bonus depreciation). Current Total Cost Description Cost §179 Expense MACRS Basis MACRS Recovery Deduction Depreciation Office furniture $ 180,000 $ o $ 180,000 2$ Machinery 1,566,000 1,00 566,000 1,000,000 Used delivery truck 46,000 ol 46,000 Total $ 1,792,000 $ 1.000.000 $ 792,000 $ $ 1,000,000
Transcribed Image Text:! Required information Comprehensive Problem 02-76 (LO 02-1, LO 02-2, LO 02-3, LO 02-4, LO 02-5) (Algo) [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: Date Placed in Asset Office furniture Service 02/03/2020 07/22/2020 08/17/2020 Cost $ 180, 000 Machinery Used delivery truck* *Not considered a luxury automobile. 1, 566, 000 46, 000 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: Date Placed in Asset Service Computers and information system Luxury autot Assembly equipment Storage building Cost $ 406, 000 81, 500 1, 230, 000 700, 000 03/31/2021 05/26/2021 08/15/2021 11/13/2021 tused 100% for business purposes. Karane generated taxable income in 2021 of $1,740,000 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.) Comprehensive Problem 02-76 Part a (Algo) Required: a. Compute the maximum 2020 depreciation deductions, including $179 expense (ignoring bonus depreciation). Current Total Cost Description Cost §179 Expense MACRS Basis MACRS Recovery Deduction Depreciation Office furniture $ 180,000 $ o $ 180,000 2$ Machinery 1,566,000 1,00 566,000 1,000,000 Used delivery truck 46,000 ol 46,000 Total $ 1,792,000 $ 1.000.000 $ 792,000 $ $ 1,000,000
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