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Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2018. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2018:

Asset	Cost		Date Placed in Service
Office furniture	$	150,000	02/03/2018
Machinery		1,560,000	07/22/2018
Used delivery truck*		40,000	08/17/2018

*Not considered a luxury automobile.

During 2018, Karane was very successful (and had no 179 limitations) and decided to acquire more assets in 2019 to increase its production capacity. These are the assets acquired during 2019:

Asset	Cost		Date Placed in Service
Computers & info. system	$	400,000	03/31/2019
Luxury auto		80,000	05/26/2019
Assembly equipment		1,200,000	08/15/2019
Storage building		700,000	11/13/2019

Used 100% for business purposes.

Karane generated taxable income in 2019 of $1,732,500 for purposes of computing the 179 expense. (Use MACRS Table 1, Table 2, Table 3, Table 4, Table 5, and Exhibit 10-10.) Assume the 2018 179 limits are the same as those in 2019.(Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.)

b. Compute the maximum 2019 depreciation deductions, including S179 expense (ignoring bonus depreciation). Total Depreciation Deduction Current MACRS Sec. 179 Description Cost MACRS Basis Expense Depreciation |2018 Assets Office furniture 0 Machinery Used delivery truck C C 2019 Assets Computers & Info. System Luxury Auto |Assembly Equipment Storage Building C C 0 Totals C e C

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