Required information Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (The following information applies to the questions displayed below.) Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2019. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019: Asset Office furniture Machinery Used delivery truck* Cost $ 150,000 1,560,000 40,000 Date Placed in Service 02/03/2019 07/22/2019 08/17/2019 *Not considered a luxury automobile. During 2019, Karane was very successful and had no 3179 limitations) and decided to acquire more assets in 2020 to increase its production capacity. These are the assets acquired during 2020: Asset Computers & info. system Luxury autot Assembly equipment Storage building Cost $ 400,000 80,000 1,200,000 700,000 Date Placed in Service 03/31/2020 05/26/2020 08/15/2020 11/13/2020 tUsed 100% for business purposes. Karane generated taxable income in 2020 of $1,732,500 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 d d. Now assume that during 2020, Karane decides to buy a competitor's assets for a purchase price of $1,350,000. Compute the maximum 2020 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 Cost $220,000 230,000 250,000 198,000 2,000 430,000 20,000 Date Placed in Service 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 Required information Description Cost Sec. 179 Expense Bonus MACRS Basis MACRS Depreciation Current Amortization Recovery Deduction $ 0 $ 0 $ 0 2019 Assets Office Furniture Machinery Used Delivery Truck 150,000 $ 1,560,000 40,000 0 0 0 0 0 0 2020 Assets Computers & Info. System Luxury Auto Assembly Equipment Storage Building 0 400,000 80,000 1,200.000 700,000 400,000 8,000 200,000 400,000 8,000 1,200,000 0 1,000,000 0 0 220,000 0 0 0 230,000 250,000 0 Inventory Office Furniture Machinery Patent Goodwill Building Land 230,000 250,000 198,000 2,000 430,000 230,000 250,000 0 0 0 0 0 0 0 0 0 0 0 20,000 0 0 Totals $ 5,480,000 $ 1,000,000 $ 1,088,000 $ 0 $ 0 $ 0 $ $ 2,088,000 Required information Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (The following information applies to the questions displayed below.) Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2019. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019: Asset Office furniture Machinery Used delivery truck* Cost $ 150,000 1,560,000 40,000 Date Placed in Service 02/03/2019 07/22/2019 08/17/2019 *Not considered a luxury automobile. During 2019, Karane was very successful and had no 3179 limitations) and decided to acquire more assets in 2020 to increase its production capacity. These are the assets acquired during 2020: Asset Computers & info. system Luxury autot Assembly equipment Storage building Cost $ 400,000 80,000 1,200,000 700,000 Date Placed in Service 03/31/2020 05/26/2020 08/15/2020 11/13/2020 tUsed 100% for business purposes. Karane generated taxable income in 2020 of $1,732,500 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 d d. Now assume that during 2020, Karane decides to buy a competitor's assets for a purchase price of $1,350,000. Compute the maximum 2020 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 Cost $220,000 230,000 250,000 198,000 2,000 430,000 20,000 Date Placed in Service 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 Required information Description Cost Sec. 179 Expense Bonus MACRS Basis MACRS Depreciation Current Amortization Recovery Deduction $ 0 $ 0 $ 0 2019 Assets Office Furniture Machinery Used Delivery Truck 150,000 $ 1,560,000 40,000 0 0 0 0 0 0 2020 Assets Computers & Info. System Luxury Auto Assembly Equipment Storage Building 0 400,000 80,000 1,200.000 700,000 400,000 8,000 200,000 400,000 8,000 1,200,000 0 1,000,000 0 0 220,000 0 0 0 230,000 250,000 0 Inventory Office Furniture Machinery Patent Goodwill Building Land 230,000 250,000 198,000 2,000 430,000 230,000 250,000 0 0 0 0 0 0 0 0 0 0 0 20,000 0 0 Totals $ 5,480,000 $ 1,000,000 $ 1,088,000 $ 0 $ 0 $ 0 $ $ 2,088,000