Exercise 8-24 (Algorithmic) (LO. 3) McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $404,900 in 2023. The taxable income of the business for the year is $70,700 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: § 179 carryover to 2024: 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 2023:

Exercise 8-24 (Algorithmic) (LO. 3) McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $404,900 in 2023. The taxable income of the business for the year is $70,700 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: § 179 carryover to 2024: 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 2023:

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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