Question
Exercise 8-24 (Algorithmic) (LO. 3) McKenzie purchased qualifying equipment for his business that cost $251,200 in 2022. The taxable income of the business for the
Exercise 8-24 (Algorithmic) (LO. 3) McKenzie purchased qualifying equipment for his business that cost $251,200 in 2022. The taxable income of the business for the year is $142,100 before consideration of any 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's 179 expense deduction for 2022 and any carryover to 2023. 179 expense deduction for 2022: ________________________ 179 carryover to 2023:__________________________ 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 . 179 expense deduction for 2022: _______________ 179 carryover to 2023: ___________________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started