Problem $8-15$

Modified Accelerated Cost Recovery System $($MACRS$)$ and Bonus Depreciation, Election to Expense $($Section $179)($LO $8\mathrm{.}2,8\mathrm{.}3)$ $$25,000.$

You are Tom's tax advisor. Complete the memorandum regarding the options you would advise for Tom and the treatment of this machine for tax purposes in $2023.$

Click here to access the depreciation table.

If required, round your final answers to the nearest dollar.

To: Tom Busin

From: Tax Ad

One option is

assuming no

maximize yo

Memorandum

$8$

To: Tom Businessman

From: Tax Advisor

One option is to utilize Section $179$ which, by election, would allow you to expense $ $x$ of the cost of the machine in $2023.$ If the Section $179$ election is not made and maximize your tax benefit in $2023.$

$q,$ bonus depreciation is taken, you would be allowed a MACRS deduction of $ $x.$ Bottom line, I would recommend the Section $179$ election $$ to

$q,$

Assignment Score: $80\%$