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Exercise 8-24 (Algorithmic) (LO. 3) McKenzie purchased qualifying equipment for his business that cost $336,000 in 2021. The taxable income of the business for the
Exercise 8-24 (Algorithmic) (LO. 3) McKenzie purchased qualifying equipment for his business that cost $336,000 in 2021. The taxable income of the business for the year is $87,700 before consideration of any 179 deduction. If an amount is zero, enter "O". a. Calculate McKenzie's 179 expense deduction for 2021 and any carryover to 2022. 179 expense deduction for 2021: $ 179 carryover to 2022: $ 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 2021: $ 179 carryover to 2022: $
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