Exercise 8-24 (Algorithmic) (LO. 3) McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $245,900 in 2023. The taxable income of the business for the year is $121,700 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: $ 121,700 ✓ § 179 carryover to 2024: $ 73,020 X 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: $ 196,720 MACRS cost recovery for 2023: $ Total cost recovery for 2023: $ 49,180 X 49,180 X
Exercise 8-24 (Algorithmic) (LO. 3) McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $245,900 in 2023. The taxable income of the business for the year is $121,700 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: $ 121,700 ✓ § 179 carryover to 2024: $ 73,020 X 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: $ 196,720 MACRS cost recovery for 2023: $ Total cost recovery for 2023: $ 49,180 X 49,180 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
aj.3
Transcribed Image Text:>
Exercise 8-24 (Algorithmic) (LO. 3)
McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $245,900 in 2023. The taxable income of
the business for the year is $121,700 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: $
121,700
§ 179 carryover to 2024: $
73,020 X
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: $
196,720 ✔
MACRS cost recovery for 2023: $
Total cost recovery for 2023: $
49,180 X
49,180 X
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education