Question

Comprehensive Problem 02-76 (LO 02-1, LO 02-2, LO 02-3, LO 02-4, LO 02-5) The tolowing information applies to the questions displeyed below Karane Enterprises, a calendar-year in year manufacturer based in College Station, Texas, began business in 2017. in the process of of assets. Below is a ist of assets acquired during 2017. seting up the business, Karane Cost Date Placed in Service Office furniture Machineny s 150,000 02/03/2017 07/22/2017 1,560.000 truck 40,000 08/17/2017 Not considered a luxury automobile During 2017, Karane was very successful land had no $179 lmitations) and decided to acquire more assets this next year to increase These are the assets acquired during 2018 its production capacity Asset Cost Date Placed in Service 400,000 03/312018 05/26/2018 Computers & info. system Luxury aunot Assembly equipment Siorage building 1200,000 00.000 1V13/201B used 100% for business purposes. Karane generated taxable income in 2018 of $1,732.500 for purposes of computing the $179 e and Exhibit 10-10) Assume the 2017 5179 limits are the same as those in positive numbers) rev: 09 14 2018 QC CS-135704 xpense (use MACRS Table 1. Table 2, Teble 3 Iees s I o answer blank. Enter zero if applicable. Input all the values as 2018 (Leave n References Comprehensive Problem 02-76 ILO 021 Lo 02-2, LO 02-3, LO 02-4, LO 02-5) Section Break Award: 2.00 points Comprehensive Problem 02-76 Part d recovery including $179 expense and bonus depreciation. Karane purchased the folowing assets for the lump-sum purchase answers to the nearest whole dollar amount.) Now assume that duing 2018, Karane decides to buy a competor's s assets for a purchase price of $1,350,000. Compute the maximum 2018 cost price. (Round your Asset Cost $ 220.000 Date Placed in Service Inventory Office furniture 09/15/2018 250 000 09/15/2018 09/15/2018 198,000 09/15/2018 09/15/2018 230 000 230,000 Patent Goodwill 2.000 430,000 20.000 09/15/2018 09/15/2018 Land