Question 1

Which depreciation convention is the general rule for tangible personal property?

Accepted Answer

A)  Full-month 
B)  Half-year 
C)  Mid-month 
D)  Mid-quarter 
E)  None of the choices are conventions for tangible personal property. 
A)  Full-month 
B)  Half-year 
C)  Mid-month 
D)  Mid-quarter 
E)  None of the choices are conventions for tangible personal property.

Question 2

Which of the following would be considered an improvement rather than routine maintenance?

Accepted Answer

A)  Oil change 
B)  Engine overhaul 
C)  Wiper blade replacement 
D)  Air filter change 
A)  Oil change 
B)  Engine overhaul 
C)  Wiper blade replacement 
D)  Air filter change

Question 3

Which is not an allowable method under MACRS?

Accepted Answer

A)  150 percent declining balance 
B)  200 percent declining balance 
C)  Straight-line 
D)  Sum-of-the-years'-digits 
E)  All of the choices are allowable methods under MACRS. 
A)  150 percent declining balance 
B)  200 percent declining balance 
C)  Straight-line 
D)  Sum-of-the-years'-digits 
E)  All of the choices are allowable methods under MACRS.

Question 4

The alternative depreciation system requires both a slower method of recovery and longer recovery periods.

Accepted Answer

A) True 
 B)False

Question 5

Business assets that tend to be used for both business and personal purposes are referred to as listed property.

Accepted Answer

A) True 
 B)False

Question 6

Bonnie Jo purchased a used camera (five-year property) for use in her sole proprietorship. The basis of the camera was $2,600. Bonnie Jo used the camera in her business 60 percent of the time and used it for personal purposes the rest of the time during the first year. Calculate Bonnie Jo's depreciation deduction during the first year, assuming the sole proprietorship had a loss during the year. (Bonnie did not place the property in service in the last quarter.)

Accepted Answer

A)  $260 
B)  $312 
C)  $520 
D)  $2,600 
E)  None of the choices are correct. 
A)  $260 
B)  $312 
C)  $520 
D)  $2,600 
E)  None of the choices are correct.

Which depreciation convention is the general rule for tangible personal property?

Which of the following would be considered an improvement rather than routine maintenance?

Which is not an allowable method under MACRS?

The alternative depreciation system requires both a slower method of recovery and longer recovery periods.

Business assets that tend to be used for both business and personal purposes are referred to as listed property.

Business Income, Deductions, and Accounting Methods

Property Dispositions

Business Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Non-Liquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Us Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters

Exam 2: Property Acquisition and Cost Recovery

Which depreciation convention is the general rule for tangible personal property?

Which of the following would be considered an improvement rather than routine maintenance?

Which is not an allowable method under MACRS?

The alternative depreciation system requires both a slower method of recovery and longer recovery periods.

Business assets that tend to be used for both business and personal purposes are referred to as listed property.

Business Income, Deductions, and Accounting Methods

Property Dispositions

Business Entities Overview

Corporate Operations

Accounting for Income Taxes

Corporate Taxation: Non-Liquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Us Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters