Question: Can I GET HELP I can get help with the right answers A,B,C,D Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO

 Can I GET HELP I can get help with the rightanswers A,B,C,D Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO10-4, LO 10-5) (Algo) [The following information applies to the questions displayedbelow.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, beganbusiness in 2020. In the process of setting up the business, Karanehas acquired various types of assets. Below is a list of assets

Can I GET HELP I can get help with the right answers A,B,C,D

Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (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: Asset Office furniture Machinery Cost $ 310,000 1,592,000 72,000 Used delivery truck* *Not considered a luxury automobile. Asset 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 02/03/2020 07/22/2020 08/17/2020 Computers and information system Luxury autot Assembly equipment Storage building Cost $ 432,000 88,000 1,360,000 800,000 Date Placed in Service 03/31/2021 05/26/2021 08/15/2021 11/13/2021 tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1,772,500 for purposes of computing the 179 expense limitation. (Use MACRS Table 1, Table 2, Table 3, Table 4, Table 5, and Exhibit 10-10.) (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.) Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (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: Asset Office furniture Machinery Cost $ 310,000 1,592,000 72,000 Used delivery truck* *Not considered a luxury automobile. Asset 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 02/03/2020 07/22/2020 08/17/2020 Computers and information system Luxury autot Assembly equipment Storage building Cost $ 432,000 88,000 1,360,000 800,000 Date Placed in Service 03/31/2021 05/26/2021 08/15/2021 11/13/2021 tUsed 100% for business purposes. Karane generated taxable income in 2021 of $1,772,500 for purposes of computing the 179 expense limitation. (Use MACRS Table 1, Table 2, Table 3, Table 4, Table 5, and Exhibit 10-10.) (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.) Comprehensive Problem 10-76 Part a (Algo) Required: a. Compute the maximum 2020 depreciation deductions, including 179 expense (ignoring bonus depreciation). Comprehensive Problem 10-76 Part a (Algo) Required: a. Compute the maximum 2020 depreciation deductions, including 179 expense (ignoring bonus depreciation). Description Office furniture Machinery Used delivery truck Total Cost $ 310,000 $ 1,592,000 72,000 $ 1,974,000 X Answer is not complete. 179 Expense 1,040,000 0 $ 1,040,000 $ MACRS Basis Current MACRS Depreciation 0 $ 0 Total Cost Recovery Deduction $ 0 1,040,000 0 $ 1,040,000 Comprehensive Problem 10-76 Part b (Algo) Required: b. Compute the maximum 2021 depreciation deductions, including 179 expense (ignoring bonus depreciation). Description 2020 Assets Office furniture Machinery Used delivery truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total $ Cost 310,000 1,592,000 72,000 Section 179 Expense 432,000 88,000 1,360,000 800,000 $ 4,654,000 $ MACRS Basis 0 $ Current Total Cost MACRS Recovery Depreciation Deduction 0 $ O $ GA $ 0 0 0 0 0 0 0 0 Comprehensive Problem 10-76 Part c (Algo) Required: c. Compute the maximum 2021 depreciation deductions, including 179 expense, but now assume that Karane would like to take bonus depreciation. Description 2020 Assets Office Furniture Machinery Used Delivery Truck 2021 Assets Computers and Information System Luxury Auto Assembly Equipment Storage Building Total $ Cost Section 179 Expense 0 $ 0 GA $ Bonus MACRS Basis 0 $ 0 Current MACRS Depreciation $ Total Cost Recovery Deduction 0 $ 0 0 0 0 0 0 0 Required: d. Now assume that during 2021, Karane decides to buy a competitor's assets for a purchase price of $1,541,680. Compute the maximum 2021 cost recovery, including 179 expense and bonus depreciation. Karane purchased the following assets for the lump- sum purchase price: (Round your final answers to the nearest whole dollar amount.) Asset Inventory Office furniture Machinery Patent Goodwill Building Land Description 2020 Assets Office Furniture Machinery Used Delivery Truck 2021 Assets Cost $ 252,000 Machinery Patent Goodwill Building Land Totals 262,000 282,000 226,800 4,880 462,000 52,000 Assume that Karane takes the maximum section 179 expense for the Assembly Equipment. Computers and Information System Luxury Auto Assembly Equipment Storage Building Inventory Office Furniture Date Placed in Service 09/15/2021 09/15/2021 $ 09/15/2021 09/15/2021 09/15/2021 09/15/2021 09/15/2021 Cost Section 179 Expense 0 $ 0 $ Bonus MACRS Basis 0 $ Current MACRS Depreciation 0 $ Current Amortization 0 $ Total Cost Recovery Deduction $ 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!