D. Now assume that during 2019, Karane decides to buy a competitor’s assets for a purchase price of $1,350,000. Compute the maximum 2019 cost recovery, including §179 expense and bonus depreciation. Karane purchased the following assets for the lump-sum purchase price. (Round your final answers to the nearest whole dollar amount.)

Part C 2019 cost recovery = $1206926. Part D - 2019 cost recovery is $1383719.

Explanation:

Machinery = class 7-year property

Used Delivery Truck = class 5-year property

710000 multiply 14.29% = 101459

40000 multiply 20% = 8000

Description     Cost  Sec. 179        MACRS        Current     MACRS           Total

                                 expense                                                               expense                          

Office Furniture    150000    150000                                                      150000

Machinery          156000       850000    710000   101459                    951459

Used

delivery truck          40000                       40000       8000                     8000

Totals                   1750000   1000000    750000      109459              1109459

Description     Cost  Sec. 179        MACRS        Current     MACRS           Total

                                 expense                                                               expense

Office Equipment    150000

Machinery              1560000                               710000     173879   173879

Used

delivery truck          40000                                   40000      12800     12800