equired information Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5)...
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Comprehensive Problem 10-76 (LO 10-1, LO 10-2, LO 10-3, LO 10-4, LO 10-5) (Algo)
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[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
Cost
Date Placed in Service
Office furniture
$ 180,000
02/03/2020
Machinery
1,566,000
07/22/2020
Used delivery truck*
46,000
08/17/2020
*Not considered a luxury automobile.
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:
Asset
Cost
Date Placed in Service
Computers and information system
$ 406,000
03/31/2021
Luxury auto
81,500
05/26/2021
Assembly equipment
1,230,000
08/15/2021
Storage building
700,000
11/13/2021
Used 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 10-76 Part e (Algo)
e. Complete Karane Enterprises's Form 4562 for part (b).
(Use 2021 tax rules regardless of year on tax form. Do not skip rows when entering property under line item 26 of Form 4562. Assets acquired during 2021 have to be entered under Section B part of Form 4562, page 1.)
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