Exercise 5-8 (Algorithmic) (LO. 7) In 2022, McKenzie purchased qualifying equipment for his business that cost $330,700. The taxable income of the business for the year is $113,200 before consideration of any 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's 179 expense deduction for 2022 and any carryover to 2023. 179 expense deduction for 2022: x 9 179 carryover to 2023: b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of On April 5, 2022, Kinsey places in service a new automobile that cost $74,000. He does not elect 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 85% for business and 15% 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: $10,200; year 2: $16,400. If required, round your final answers to the nearest dollar. Compute the total depreciation allowed for: 2022: 2023: