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In 2020, McKenzie purchased qualifying equipment for his business that cost $251,200. 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 5 179 expense deduction for 2020 and any carryover to 2021. § 179 expense deduction for 2020: $ X § 179 carryover to 2021: $ X

In 2020, McKenzie purchased qualifying equipment for his business that cost $251,200. 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 5 179 expense deduction for 2020 and any carryover to 2021. § 179 expense deduction for 2020: $ X § 179 carryover to 2021: $ X

FINANCIAL ACCOUNTING
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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Exercise 5-8 (Algorithmic) (LO. 7) In 2020, McKenzie purchased qualifying equipment for his business that cost $251,200. 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 2020 and any carryover to 2021. § 179 expense deduction for 2020: $ X § 179 carryover to 2021: $ 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 8.4. § 179 expense deduction for 2020: $ 0 § 179 carryover to 2021: 0
Transcribed Image Text:Exercise 5-8 (Algorithmic) (LO. 7) In 2020, McKenzie purchased qualifying equipment for his business that cost $251,200. 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 2020 and any carryover to 2021. § 179 expense deduction for 2020: $ X § 179 carryover to 2021: $ 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 8.4. § 179 expense deduction for 2020: $ 0 § 179 carryover to 2021: 0
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