Exercise 8-25 (Algorithmic) (LO. 4) On April 5, 2020, Kinsey paces in service a new automobile that cost $75,500. He does not elect 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 65% for business and 25% for personal use in each tax year. Kinsey chooses the MACRS 200% declining balance method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this problem. Assume the following luxury automobile limitations: year 1: $10,100; year 2: $16,100. If required, round your final answers to the nearest dollar. Compute the total depreciation allowed for 2020: 2021: Exercise 8-24 Algorithmic) (L0.3) Mckenzie purchased qualifying equipment for his business that cost $489,700 in 2020. The taxable income of the business for the year is $9,500 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: $ 179 carryover to 2021: $ 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 2020: 5 179 carryover to 2021 Exercise 8-26 (Algorithmic) (LO. 7) On October 1, 2020, Priscilla purchased a business. Of the purchase price, $190,000 is allocated to a patent and $1,140,000 to goodwill. If required, round your intermediate values to nearest dollar and use in subsequent computations. Calculate Priscilla's 2020 $ 197 amortization deduction. eBook Calculator Exercise 8-27 (Algorithmic) (LO. 8) On March 25, Parscale Company purchases the rights to a mineral interest for $8,799,500. At that time, the remaining recoverable units in the mineral interest are estimated to be 902,600 tons. If required, round any division to two decimal places and use in subsequent computations. Round your final answer to the nearest dollar. If 812,340 tons are mined and 135,390 tons are sold this year, calculate Parscale's cont depletion for the year. Exercise 8-28 (Algorithmic) (LO. 8) Jebali Company reports gross income of $690,000 and other property-related expenses of $448,500 and uses a depletion rate of 13%. Calculate Jebali's depletion allowance for the current year