tab caps l hift Exercise 24 (Algorithmic) (LO. 3) McKenzie purchased qualifying equipment for his business that cost $389,000 in 2021. The taxable income of the business for the year is $101,300 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 5 179 expense deduction for 2021: $ 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 179 expensing? Hint: See Concept Summary 8.3. 179 expense deduction for 2021: $ 179 carryover to 2022: $ 19 Exercise 8-25 (Algorithmic) (LO. 4). On April 5, 2021, Kinsey places in service a new automobile that cost $56,000. He does not elect 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 95% for business and 5% 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: $10,100; year 2: $16,100. If required, round your final answers to the nearest dollar. Compute the total depreciation allowed for: 2021: $ 2022: $ 10 Exercise 8-26 (Algorithmic) (LO. 7) On October 1, 2021, Vernica purchased a business. Of the purchase price, $64,000 is allocated to a patent and $384,000 to goodwill, If required, round your intermediate values to nearest dollar and use in subsequent computations. Calculate Vernica's 2021 197 amortization deduction. $ * 6,867