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Exercise 5-8 (Algorithmic) (LO. 7) In 2020, McKenzie purchased qualifying equipment for his business that cost $293,600. The taxable income of the business for the

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Exercise 5-8 (Algorithmic) (LO. 7) In 2020, McKenzie purchased qualifying equipment for his business that cost $293,600. The taxable income of the business for the year is $106,400 before consideration of any $ 179 deduction If an amount is zero, enter "O". a. Calculate McKenzie's $ 179 expense deduction for 2020 and any carryover to 2021. $ 179 expense deduction for 2020: 293,600 5 179 carryover to 2021: b. How would your answer change Mckenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using $ 179 expensing? Hints See Concept Summary 8.4. $ 179 expense deduction for 2020 $ 179 carryover to 2021: Preve Document eedback W MacBook Air 000 000 II > F7 F8 F9 FIO A $ 4 % 5 6 & 7 * 00 1 0 9 Exercise 5-5 (Algorithmic) (LO, 5) Tabitha sells real estate on March 2 of the current year for $335,200. The buyer, Ramona, pays the real estate taxes of $16,760 for the calendar year, which is the real estate property tax year. Round any division to four decimal places and use in subsequent calculations. Round your final answers to the nearest dollar. Assume a 365-day year. Determine the real estate taxes apportioned to and deductible by the seller. Tabitha, and the amount of taxes deductible by Ramona Tabitha: Ramona: . Calculate Ramona's basis in the property and the amount realized by Tabitha from the sale. Ramona: Previous Feedback MacBook Air DOD 13 D4 SVO 511 3 $ 4 % 5 & & 7 6 * O I C 9 0 Il R T Y U 0 Exercise 5-3 (Algorithmic) (LO. 3) Stanford owns and operates two dry deaning businesses. He travels to Boston to discuss acquiring a restaurant. Later in the month, he travels to New York to discuss acquiring a bakery. Stanford does not acquire the restaurant but does purchase the bakery on November 1, 2020 Stanford incurred the following expenses: Total Investigation costs related to the restaurant Total investigation costs related to the bakery $40,750 51,800 It required, round any division to two decimal places and use in subsequent computation. Round your final answer to the nearest dollar. What is the maximum amount Stanford can deduct in 2020 for investigation expenses? Previous ocenti Feedback 30 MacBook Air 000 ODOR : FS 10 FB 19 510 A $ 4 % 5 * 6 6 & 7 8 9 ) 0 R. T Y E 0

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