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Business, 10.03.2020 17:00 nelsoneligwe7

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. If an amount is zero, enter "0".

a. McKenzie's § 179 expense deduction is $ 5,600 for 2018. His § 179 carryover to 2019 is $ 206,400 .

b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment? Hint: See Concept Summary 8.5. McKenzie's § 179 expense deduction is ? for 2018. His § 179 carryover to 2019 is ?

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