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Business, 26.10.2020 17:00 evaeh

In 2019, 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 Section 179 deduction. a. Calculate McKenzie’s Section 179 expense deduction for 2019 and any carryover to 2020.

b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using Section 179 expensing?

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