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

McKenzie placed in service qualifying equipment $(7-$year MACRS class$)$ for his business that cost $$212,000$ in $2023.$ The taxable income of

the business for the year is $$5,600$ 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 $2023$ : $

EX$\mathrm{.}08-25$

Exercise $8-25($L$0.4)$

On April $5,2023,$ Kinsey places in service a new automobile that cost $$70,000.$ He does not elect $179$ expensing, and he elects not to

take any available additional first$-$year depreciation. The car is used $75\%$ for business and $25\%$ for personal use in each tax year. Kinsey

uses the regular MACRS method of cost recovery $($the auto is a $5-$year asset$).$

Click here to access the depreciation table to use for this problem.

Compute the total depreciation allowed for:

$2023$:

$2024$:

$$

$q$