Exercise 8-24 (Algorithmic) (LO. 3) McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $404,900 in 2023. The taxable income of the business for the year is $70,700 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 8.3. Additional first-year depreciation for 2023: $ MACRS cost recovery for 2023: $ Total cost recovery for 2023:
Exercise 8-24 (Algorithmic) (LO. 3) McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $404,900 in 2023. The taxable income of the business for the year is $70,700 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 8.3. Additional first-year depreciation for 2023: $ MACRS cost recovery for 2023: $ Total cost recovery for 2023:
Chapter8: Depreciation And Sale Of Business Property
Section: Chapter Questions
Problem 4MCQ: James purchased office equipment for his business. The equipment has a depreciable basis of $7,000...
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT