McKenzie purchased qualifying equipment for his business that cost $212,000 in 2021. The taxable income of the
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McKenzie purchased qualifying equipment for his business that cost $212,000 in 2021. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction.
a. Calculate McKenzie’s § 179 expense deduction for 2021 and any carryover to 2022.
b. How would your answer change if McKenzie decided to use additional firstyear (bonus) depreciation on the equipment instead of using § 179 expensing?
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a Basis 212000 Cost16212000 Exp 50 b 179 Expense deduction for 2021 Deductio...View the full answer
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Related Book For
South-Western Federal Taxation 2022 Individual Income Taxes
ISBN: 9780357519073
45th Edition
Authors: James C. Young, Annette Nellen, William A. Raabe, Mark Persellin, William H. Hoffman
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