Question 1

Racine started a new business in the current year. She incurred $52,000 of start-up costs. If her business started on November 23rd of the current year, what is the total expense she may deduct with respect to the start-up costs for her initial year, rounded to the nearest whole number?

Accepted Answer

A)  $2,555
B)  $3,544
C)  $5,522
D)  $52,000
E)  None of theseF) A) and D)
G) B) and D)

Question 2

The 200 percent or double declining balance method is allowable for five and seven-year property.

Accepted Answer

A) True 
 B)False

Question 3

Bonnie Jo purchased a used computer (5-year property)  for use in her sole proprietorship. The basis of the computer was $2,400. Bonnie Jo used the computer 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 expense 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)  $240
B)  $288
C)  $480
D)  $2,400
E)  None of theseF) A) and C)
G) C) and D)

Question 4

The MACRS depreciation tables automatically switch to the straight-line method when the straight-line method yields a higher annual depreciation amount than the declining balance method.

Accepted Answer

A) True 
 B)False

Question 5

Eddie purchased only one asset during the current year. Eddie placed in service furniture (7-year property) on May 1st with a basis of $26,500. Calculate the maximum depreciation expense, rounded to the nearest whole number (ignoring §179 and bonus depreciation).

Accepted Answer

$3,787
Explanation: The asset's recovery...

Question 6

If a machine (seven-year property) being depreciated using the half-year convention is disposed of during the seventh year, a taxpayer must multiply the appropriate depreciation percentage from the MACRS table percentage by 50 percent to calculate the depreciation expense properly.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following assets are eligible for §179 expensing?

Accepted Answer

A)  Used office machinery
B)  Qualified leasehold improvements
C)  A new delivery truck
D)  Used office furniture
E)  All of theseF) A) and C)
G) A) and E)

Exam 10: Property Acquisition and Cost Recovery

Correct Answer
verified

Eddie purchased only one asset during the current year. Eddie placed in service furniture (7-year property) on May 1^st with a basis of $26,500. Calculate the maximum depreciation expense, rounded to the nearest whole number (ignoring §179 and bonus depreciation).

Correct Answer
verified
$3,787
Explanation: The asset's recovery...
View Answer

If a machine (seven-year property) being depreciated using the half-year convention is disposed of during the seventh year, a taxpayer must multiply the appropriate depreciation percentage from the MACRS table percentage by 50 percent to calculate the depreciation expense properly.

Correct Answer
verified

The 200 percent or double declining balance method is allowable for five and seven-year property.

Correct Answer
verified

The MACRS depreciation tables automatically switch to the straight-line method when the straight-line method yields a higher annual depreciation amount than the declining balance method.

Correct Answer
verified

Racine started a new business in the current year. She incurred $52,000 of start-up costs. If her business started on November 23^rd of the current year, what is the total expense she may deduct with respect to the start-up costs for her initial year, rounded to the nearest whole number?

Correct Answer
verified

Which of the following assets are eligible for §179 expensing?

Correct Answer
verified

Exam 10: Property Acquisition and Cost Recovery

Correct AnswerverifiedShow Answer

Eddie purchased only one asset during the current year. Eddie placed in service furniture (7-year property) on May 1st with a basis of $26,500. Calculate the maximum depreciation expense, rounded to the nearest whole number (ignoring §179 and bonus depreciation).

Correct Answerverified$3,787Explanation: The asset's recovery...View AnswerShow Answer

If a machine (seven-year property) being depreciated using the half-year convention is disposed of during the seventh year, a taxpayer must multiply the appropriate depreciation percentage from the MACRS table percentage by 50 percent to calculate the depreciation expense properly.

Correct AnswerverifiedShow Answer

The 200 percent or double declining balance method is allowable for five and seven-year property.

Correct AnswerverifiedShow Answer

The MACRS depreciation tables automatically switch to the straight-line method when the straight-line method yields a higher annual depreciation amount than the declining balance method.

Correct AnswerverifiedShow Answer

Racine started a new business in the current year. She incurred $52,000 of start-up costs. If her business started on November 23rd of the current year, what is the total expense she may deduct with respect to the start-up costs for her initial year, rounded to the nearest whole number?

Correct AnswerverifiedShow Answer

Which of the following assets are eligible for §179 expensing?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Eddie purchased only one asset during the current year. Eddie placed in service furniture (7-year property) on May 1^st with a basis of $26,500. Calculate the maximum depreciation expense, rounded to the nearest whole number (ignoring §179 and bonus depreciation).

Correct Answer
verified
$3,787
Explanation: The asset's recovery...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Racine started a new business in the current year. She incurred $52,000 of start-up costs. If her business started on November 23^rd of the current year, what is the total expense she may deduct with respect to the start-up costs for her initial year, rounded to the nearest whole number?

Correct Answer
verified

Correct Answer
verified