Exercise $8-24($Algorithmic$)($LO$.3)$

McKenzie placed in service qualifying equipment $(7-$year MACRS class$)$ for his business that cost $$272,400$ in $2023.$ The taxable

income of the business for the year is $$45,200$ 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 $8\mathrm{.}3.$

Additional first$-$year depreciation for $2023$: $

MACRS cost recovery for $2023$: $

Total cost recovery for $2023$: $