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Korone Enterprises, a calendar-year manufacturer bosed in College Station, Texss, began business in 2022. In the process of setting up the business, Korone has ocquired vorious types of sssets. Below is a list of ossets acquired during 2022: *Not considered a luxury sutomobile. During 2022, Karane wss very successful (ond had no 6179 limitations) and decided to acquire more sssets in 2023 to increose its production copocity. These are the ossets ocquired during 2023 : *Used 100% for business purposes. Korone genersted toxable income in 2023 of $1,742,500 for purposes of computing the $179 expense limitation. (Usel MACRS Table 1. Toble 2, Toble 3, Toble 4. Toble 5, and Exhibit 10-10.) Note: Leave no answer blank. Enter zero If applicable. Input all the values as positive numbers. Required: d. Now sssume that during 2023, Korone decides to buy o competitor's assets for a purchsse price of $1,397,920. Compute the moximum 2023 cost recovery, including $179 expense and bonus depreciotion. Korane purchased the following ossets for the lumpsum purchsse price: Note: Round your final answers to the nearest whole dollar amount. Assume that Karane takes the moximum section 179 expense for the Assembly Equipment. Table 1 MACRS Half-Year Convention TABLE 2a MACRS Mid-Quarter Convention: For property placed in senvice during the first quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7Year \\ \hline Year 1 & 35.00% & 25.00% \\ \hline Year 2 & 26.00 & 21.43 \\ \hline Year 3 & 15.60 & 15.31 \\ \hline Year 4 & 11.01 & 10.93 \\ \hline Year 5 & 11.01 & 8.75 \\ \hline Year 6 & 1.38 & 8.74 \\ \hline Year 7 & & 8.75 \\ \hline Year 8 & & 1.09 \\ \hline \end{tabular} TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7Year \\ \hline Year 1 & 25.00% & 17.85% \\ \hline Year 2 & 30.00 & 23.47 \\ \hline Year 3 & 18.00 & 16.76 \\ \hline Year 4 & 11.37 & 11.97 \\ \hline Year 5 & 11.37 & 8.87 \\ \hline Year 6 & 4.26 & 8.87 \\ \hline Year 7 & & 8.87 \\ \hline Year 8 & & 3.34 \\ \hline \end{tabular} TABLE 2c MACRS Mid-Quarter Convention: For propersy placed in service during the third quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 15.00% & 10.71% \\ \hline Year 2 & 34.00 & 25.51 \\ \hline Year 3 & 20.40 & 18.22 \\ \hline Year 4 & 12.24 & 13.02 \\ \hline Year 5 & 11.30 & 9.30 \\ \hline Year 6 & 7.06 & 8.85 \\ \hline Year 7 & & 8.86 \\ \hline Year 8 & & 5.53 \\ \hline \end{tabular} TABLE 2d MACRS-Mid Quarter Convention: For property placed in service dwing the fourth quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 5.00% & 3.57% \\ \hline Year 2 & 38.00 & 27.55 \\ \hline Year 3 & 22.80 & 19.68 \\ \hline Year 4 & 13.68 & 14.06 \\ \hline Year 5 & 10.94 & 10.04 \\ \hline Year 6 & 9.58 & 8.73 \\ \hline Year 7 & & 8.73 \\ \hline Year 8 & & 7.64 \\ \hline \end{tabular} TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years EXHIBIT 10-10 Automobile Depreciation Limits *\$8,000 additional depreciation is allowed when bonus depreciation is claimed [$168($)(2)(F)]. Korone Enterprises, a calendar-year manufacturer bosed in College Station, Texss, began business in 2022. In the process of setting up the business, Korone has ocquired vorious types of sssets. Below is a list of ossets acquired during 2022: *Not considered a luxury sutomobile. During 2022, Karane wss very successful (ond had no 6179 limitations) and decided to acquire more sssets in 2023 to increose its production copocity. These are the ossets ocquired during 2023 : *Used 100% for business purposes. Korone genersted toxable income in 2023 of $1,742,500 for purposes of computing the $179 expense limitation. (Usel MACRS Table 1. Toble 2, Toble 3, Toble 4. Toble 5, and Exhibit 10-10.) Note: Leave no answer blank. Enter zero If applicable. Input all the values as positive numbers. Required: d. Now sssume that during 2023, Korone decides to buy o competitor's assets for a purchsse price of $1,397,920. Compute the moximum 2023 cost recovery, including $179 expense and bonus depreciotion. Korane purchased the following ossets for the lumpsum purchsse price: Note: Round your final answers to the nearest whole dollar amount. Assume that Karane takes the moximum section 179 expense for the Assembly Equipment. Table 1 MACRS Half-Year Convention TABLE 2a MACRS Mid-Quarter Convention: For property placed in senvice during the first quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7Year \\ \hline Year 1 & 35.00% & 25.00% \\ \hline Year 2 & 26.00 & 21.43 \\ \hline Year 3 & 15.60 & 15.31 \\ \hline Year 4 & 11.01 & 10.93 \\ \hline Year 5 & 11.01 & 8.75 \\ \hline Year 6 & 1.38 & 8.74 \\ \hline Year 7 & & 8.75 \\ \hline Year 8 & & 1.09 \\ \hline \end{tabular} TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7Year \\ \hline Year 1 & 25.00% & 17.85% \\ \hline Year 2 & 30.00 & 23.47 \\ \hline Year 3 & 18.00 & 16.76 \\ \hline Year 4 & 11.37 & 11.97 \\ \hline Year 5 & 11.37 & 8.87 \\ \hline Year 6 & 4.26 & 8.87 \\ \hline Year 7 & & 8.87 \\ \hline Year 8 & & 3.34 \\ \hline \end{tabular} TABLE 2c MACRS Mid-Quarter Convention: For propersy placed in service during the third quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 15.00% & 10.71% \\ \hline Year 2 & 34.00 & 25.51 \\ \hline Year 3 & 20.40 & 18.22 \\ \hline Year 4 & 12.24 & 13.02 \\ \hline Year 5 & 11.30 & 9.30 \\ \hline Year 6 & 7.06 & 8.85 \\ \hline Year 7 & & 8.86 \\ \hline Year 8 & & 5.53 \\ \hline \end{tabular} TABLE 2d MACRS-Mid Quarter Convention: For property placed in service dwing the fourth quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 5.00% & 3.57% \\ \hline Year 2 & 38.00 & 27.55 \\ \hline Year 3 & 22.80 & 19.68 \\ \hline Year 4 & 13.68 & 14.06 \\ \hline Year 5 & 10.94 & 10.04 \\ \hline Year 6 & 9.58 & 8.73 \\ \hline Year 7 & & 8.73 \\ \hline Year 8 & & 7.64 \\ \hline \end{tabular} TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years EXHIBIT 10-10 Automobile Depreciation Limits *\$8,000 additional depreciation is allowed when bonus depreciation is claimed [$168($)(2)(F)]

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