Question: Exercise 5-8 (Algorithmic) (LO. 7) In 2021, McKenzie purchased qualifying equipment for his business that cost $468,500. The taxable income of the business for

Exercise 5-8 (Algorithmic) (LO. 7) In 2021, McKenzie purchased qualifying equipment for

Exercise 5-8 (Algorithmic) (LO. 7) In 2021, McKenzie purchased qualifying equipment for his business that cost $468,500. The taxable income of the business for the year is $109,800 before consideration of any 5 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's 179 expense deduction for 2021 and any carryover to 2022. 5 179 expense deduction for 2021: s 5 179 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 5179 expensing? Hint: See Concept Summary 8.3. 179 expense deduction for 2021: s 5179 carryover to 2022:

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