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Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (Static) 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 Cost Service Office furniture $ 150,000 02/03/2020 Machinery 1,560,000 07/22/2020 Used delivery truck 40,000 08/17/2020 "Not considered a luxury automobile During 2020, Karane was very successful and had no 5179 limitations and decided to acquire more assets in 202110 increase its production capacity. These are the assets acquired during 2021 Date Placed in Asset Cost Service Computers and information system 5400,000 03/31/2001 Luxury auto! 80,000 05/36/2001 Assembly equipment 1,200,000 08/15/2021 Storage building 700.000 11/11/2021 Used 100% for business purposes Karane generated taxable income in 2021 of 51732 500 for purposes of computing the 5179 expense limitation (Use MACRS Table 1. Table 2 Table 3. Tobie 1. 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 (Static) EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year 1 2 3 4 and after 2021* 10,100** 16,100 9.700 5,760 Year Placed in Service 2020 2019 10,100** 10,100** 16,100 16.100 9,700 9,700 5,760 5,760 2018 10,000** 16.000 9,600 5,760 * As of press date, the IRS had not released the 2021 limitations for automobiles, so throughout the chapter we **$8,000 additional depreciation is allowed when bonus depreciation is claimed ($168(k) (2) (F)]. Required: d. Now assume that during 2021, Karane decides to buy a competitor's assets for a purchase price of $1350,000. 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.) Date Placed in Asset Cost Service Inventory $ 220,000 09/15/2021 office furniture 230,000 09/15/2021 Machinery 250,000 09/15/2021 Patent 198,000 09/15/2021 Goodwill 2,000 09/15/2021 Building 430,000 09/15/2021 Land 20,000 09/15/2021 Assume that karane takes the maximum section 179 expense for the Assembly Equipment Description Cost Section 179 Expense Bonus MACRS Basis Current MACRS Depreciation Current Amortization Total Cost Recovery Deduction 5 0 2020 Assets Office Furniture Machinery Used Delivery Truck 2021 Assets Computers and Information System Luxury Auto Required information Land 20.000 09/15/2021 Assume that Karane takes the maximum section 179 expense for the Assembly Equipment Description Cost Section 179 Expense Bonus MACRS Basis Current MACRS Depreciation Current Amortization Total Cost Recovery Deduction 0 0 0 O 0 2020 Assets Office Furniture Machinery Usod Delivery Truck 2021 Assets Computers and information System Luxury Auto Assembly Equipment Storage Building Inventory Otice Furniture Machinery Patent Goodwill Building Land Total D 0 0 0 0 0 os 05 OS 0