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McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $298,900 in 2023. The taxable income of the business for the
McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $298,900 in 2023. The taxable income of the business for the year is $125,100 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: $fill in the blank 1 125,100 179 carryover to 2024: $fill in the blank 2 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. Additional first-year depreciation for 2023: $fill in the blank 3 MACRS cost recovery for 2023: $fill in the blank 4 Total cost recovery for 2023: $fill in the blank 5
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