In 2018, McKenzie purchased qualifying equipment for his business that cost $212,000. The taxable income of the

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In 2018, McKenzie purchased qualifying equipment for his business that cost $212,000. 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?

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South-Western Federal Taxation 2019 Essentials Of Taxation Individuals And Business Entities

ISBN: 9781337702966

22nd Edition

Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

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Question Posted: Jun 13, 2019 11:37 AM

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In 2018, McKenzie purchased qualifying equipment for his business that cost $212,000. The taxable income of the

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a In 2018 179 permits the taxpayer to elect to deduct up to 1000000 of the acquisition cost of tangi...View the full answer

South-Western Federal Taxation 2019 Essentials Of Taxation Individuals And Business Entities

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