McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $212,000 in 2023. The taxable income ofthe 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: $5,600 ✓§ 179 carryover to 2024: $206,400b. 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:oxMACRS cost recovery for 2023:Total cost recovery for 2023: $0 X0 X

Bonus depreciation (cost recovery) is different from section 179 expense. Unlike section 179, there…

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: $ Total cost recovery for 20231 0 X OX

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: $ Total cost recovery for 20231 0 X OX

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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