Question 1

Automobiles generally have a 3-year cost recovery period under the Modified Accelerated Cost Recovery System (MACRS).

Accepted Answer

A) True 
 B)False

Question 2

Johnny owned a gas station with an adjusted basis of $300,000.After it was destroyed in a fire, he received $560,000 from the insurance company.Within the next year, he bought a new gas station for $500,000.What is Johnny's recognized gain and what is the basis in the new building?

Accepted Answer

A) $260,000; $500,000 
B) $200,000; $300,000 
C) $60,000; $300,000 
D) $260,000; $300,000 
E) $60,000; $500,000 
A) $260,000; $500,000 
B) $200,000; $300,000 
C) $60,000; $300,000 
D) $260,000; $300,000 
E) $60,000; $500,000

Automobiles generally have a 3-year cost recovery period under the Modified Accelerated Cost Recovery System (MACRS).

Johnny owned a gas station with an adjusted basis of $300,000.After it was destroyed in a fire, he received $560,000 from the insurance company.Within the next year, he bought a new gas station for $500,000.What is Johnny's recognized gain and what is the basis in the new building?

The Individual Income Tax Return

Gross Income and Exclusions

Additional Income Part 1

Additional Income Part 2

Deductions and Adjustments to Income

Accounting Methods and Taxes

Tax Credits

Payroll, Estimated Payments, and Retirement Plans

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 8: Depreciation and Sale of Business Property

Automobiles generally have a 3-year cost recovery period under the Modified Accelerated Cost Recovery System (MACRS).

Johnny owned a gas station with an adjusted basis of $300,000.After it was destroyed in a fire, he received $560,000 from the insurance company.Within the next year, he bought a new gas station for $500,000.What is Johnny's recognized gain and what is the basis in the new building?

The Individual Income Tax Return

Gross Income and Exclusions

Additional Income Part 1

Additional Income Part 2

Deductions and Adjustments to Income

Accounting Methods and Taxes

Tax Credits

Payroll, Estimated Payments, and Retirement Plans

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters