Question: Exercise 5-8 (Algorithmic) (LO. 7) In 2021, McKenzie purchased qualifying equipment for his business that cost $256,500. 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 $256,500. The taxable income of the business for the year is $41,800 before consideration of any 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's 5 179 expense deduction for 2021 and any carryover to 2022. 179 expense deduction for 2021: $ 179 carryover to 2022: : x 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: $ 5179 carryover to 2022: s

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