McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $212,000 in 2023. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's § 179 expense deduction for 2023 and any carryover to 2024. § 179 expense deduction for 2023: $ § 179 carryover to 2024: $ 5,600 ✓ 206,400✔ b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using § 179 expensing? Hint: See Concept Summary 8.3. Additional first-year depreciation for 2023: $ MACRS cost recovery for 2023: X Total cost recovery for 2023: $ x
McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $212,000 in 2023. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's § 179 expense deduction for 2023 and any carryover to 2024. § 179 expense deduction for 2023: $ § 179 carryover to 2024: $ 5,600 ✓ 206,400✔ b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using § 179 expensing? Hint: See Concept Summary 8.3. Additional first-year depreciation for 2023: $ MACRS cost recovery for 2023: X Total cost recovery for 2023: $ x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am. 119.
Transcribed Image Text:McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $212,000 in 2023. The taxable income of
the business for the year is $5,600 before consideration of any § 179 deduction.
If an amount is zero, enter "0".
a. Calculate McKenzie's § 179 expense deduction for 2023 and any carryover to 2024.
§ 179 expense deduction for 2023: $
§ 179 carryover to 2024: $
206,400
5,600
b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using
§ 179 expensing? Hint: See Concept Summary 8.3.
Additional first-year depreciation for 2023: $
MACRS cost recovery for 2023:
x
x
Total cost recovery for 2023: $
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