Question

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 this next year to increase its production capacity. These are the assets acquired during 2019:

Asset	Cost		Date Placed in Service
Computers & info. system	$	40,000	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.

Compute the maximum 2019 depreciation deductions, including §179 expense, but now assume that Karane would like to take bonus depreciation.

Answer 1

Assuming that Karane decided to adopt the bonus depreciation 2019.

Description	Cost ($)	Sec.179 Expenses	Bonus	Marcs basis	Current MARCS Expenses	Total Expenses
Office Furniture	150,000	-	-	-	-	-
Machinery	1,560,000	-	-	195,000	47,756	47,756
Used Delivery Truck	40,000	-	-	15,000	4,800	4,800
Computers & info system	40,000	40,000	7,500	7,500	1,500	34,000
Luxury auto	80,000	-	8,000	72,000	3,160	11,160
Assembly equipment	1,200,000	1,200,000	-	-	-	1,200,000
Storage building	700,000	-	-	700,000	2,247	2,247
Total	3,770,000	500,000	15,500	989,500	59,463	1,299,963

2019 Depreciation deduction (including $179) $1,299,963.

Please find the work out:

9973