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Exercise 8-24 (Algorithmic) (LO. 3) McKenzie purchased qualifying equipment for his business that cost $489,700...

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Exercise 8-24 (Algorithmic) (LO. 3) McKenzie purchased qualifying equipment for his business that cost $489,700 in 2020. The taxable income of the business for the year is $9,500 before consideration of any 5 179 deduction. If an amount is zero, enter "o". a. Calculate McKenzie's $ 179 expense deduction for 2020 and any carryover to 2021. $ 179 expense deduction for 2020: ${ 140,400 X 5 179 carryover to 2021: 216,800 x 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 2020: 0 0 5 179 carryover to 2021: re Check My W Section 179 (Election to Expense Certain Depreciable Business Assets) permits the taxpayer to elect to write off a certain amount of the acquisition cost of tangible personal property used in a trade or business

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