McKenzie purchased qualifying equipment for his business that cost $212,000 in 2018. 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 2018 and any carryover to 2019.
b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment?