Exam 7: Accounting Periods and Methods and Depreciation

Routine maintenance costs for capital assets are deducted in the year the amount is paid or incurred, not capitalized as an improvement to the asset.

(True/False)

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Question 101

Which one of the following is true about Modified Accelerated Cost Recovery System (MACRS)?

(Multiple Choice)

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Question 102

In 2015, a taxpayer purchases a new automobile (5 year recovery) for $56,000 for 100% use in her business. What is the total cost recovery assuming that the taxpayer does or does not elect bonus depreciation on the auto (half-year convention but no immediate expensing)?

(Multiple Choice)

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Question 103

On May 2, 2015, Scott purchased a commercial building. The cost basis assigned to the building is $600,000. Scott also owns a residential apartment building he purchased on June 15, 2014 with a cost basis of $400,000. a. Calculate Scott's total depreciation deduction for the buildings for 2015, using the Modified Accelerated Cost Recovery System. b. Calculate Scott's total depreciation deduction for the buildings for 2016, using the Modified Accelerated Cost Recovery System.

(Essay)

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Question 104

Polly is a cash basis taxpayer with the following transactions during the year: Calculate Polly's income from her business for this calendar year.

(Essay)

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Question 105

Depreciation refers to the physical deterioration or loss of value of an asset.

(True/False)

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Question 106

A taxpayer places a $50,000 5-year recovery period asset in service in 2015. This is the only asset placed in service in 2015. Assuming half-year convention, immediate expensing, and taxable income after all deductions except Section 179 of $5,000, what is the amount of Section 179 immediate expensing?

(Multiple Choice)

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Question 107

The tax law imposes restrictions on the depreciation of "listed" property such as automobiles and computers.

(True/False)

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Question 108

Taxpayers may expense the cost of depreciable personal property placed in service during the year and used in a trade or business in an amount up to a maximum of $20,000 annually.

(True/False)

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Question 109

Quince Corporation changes its year-end from a fiscal year-end to a calendar year-end. The corporation has taxable income of $39,000 for its 3-month short period beginning October 1, 2015 and ending December 31, 2015. Calculate the corporation's tax for the short period.

(Essay)

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Question 110

Max purchases a new auto in 2015 at a cost of $56,000. He uses the car 80% for business. Assuming a half-year convention, bonus depreciation (if extended though 2015) but no immediate expensing, what is the depreciation deduction on the auto?

(Multiple Choice)

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Question 111

Showing 101 - 111 of 111

Routine maintenance costs for capital assets are deducted in the year the amount is paid or incurred, not capitalized as an improvement to the asset.

Which one of the following is true about Modified Accelerated Cost Recovery System (MACRS)?

In 2015, a taxpayer purchases a new automobile (5 year recovery) for $56,000 for 100% use in her business. What is the total cost recovery assuming that the taxpayer does or does not elect bonus depreciation on the auto (half-year convention but no immediate expensing)?

Polly is a cash basis taxpayer with the following transactions during the year: Calculate Polly's income from her business for this calendar year.

Depreciation refers to the physical deterioration or loss of value of an asset.

The tax law imposes restrictions on the depreciation of "listed" property such as automobiles and computers.

Taxpayers may expense the cost of depreciable personal property placed in service during the year and used in a trade or business in an amount up to a maximum of $20,000 annually.

Quince Corporation changes its year-end from a fiscal year-end to a calendar year-end. The corporation has taxable income of $39,000 for its 3-month short period beginning October 1, 2015 and ending December 31, 2015. Calculate the corporation's tax for the short period.

Max purchases a new auto in 2015 at a cost of $56,000. He uses the car 80% for business. Assuming a half-year convention, bonus depreciation (if extended though 2015) but no immediate expensing, what is the depreciation deduction on the auto?

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 7: Accounting Periods and Methods and Depreciation

Routine maintenance costs for capital assets are deducted in the year the amount is paid or incurred, not capitalized as an improvement to the asset.

Which one of the following is true about Modified Accelerated Cost Recovery System (MACRS)?

​In 2015, a taxpayer purchases a new automobile (5 year recovery) for $56,000 for 100% use in her business. What is the total cost recovery assuming that the taxpayer does or does not elect bonus depreciation on the auto (half-year convention but no immediate expensing)?

​Polly is a cash basis taxpayer with the following transactions during the year: Calculate Polly's income from her business for this calendar year.

Depreciation refers to the physical deterioration or loss of value of an asset.

The tax law imposes restrictions on the depreciation of "listed" property such as automobiles and computers.

Taxpayers may expense the cost of depreciable personal property placed in service during the year and used in a trade or business in an amount up to a maximum of $20,000 annually.

Quince Corporation changes its year-end from a fiscal year-end to a calendar year-end. The corporation has taxable income of $39,000 for its 3-month short period beginning October 1, 2015 and ending December 31, 2015. Calculate the corporation's tax for the short period.

​Max purchases a new auto in 2015 at a cost of $56,000. He uses the car 80% for business. Assuming a half-year convention, bonus depreciation (if extended though 2015) but no immediate expensing, what is the depreciation deduction on the auto?

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

In 2015, a taxpayer purchases a new automobile (5 year recovery) for $56,000 for 100% use in her business. What is the total cost recovery assuming that the taxpayer does or does not elect bonus depreciation on the auto (half-year convention but no immediate expensing)?

Polly is a cash basis taxpayer with the following transactions during the year: Calculate Polly's income from her business for this calendar year.

Max purchases a new auto in 2015 at a cost of $56,000. He uses the car 80% for business. Assuming a half-year convention, bonus depreciation (if extended though 2015) but no immediate expensing, what is the depreciation deduction on the auto?