Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Textbook Question
Chapter 8, Problem 6MCQ
Which of the following is not true about the MACRS depreciation system:
- A salvage value must be determined before depreciation percentages are applied to depreciable real estate.
- Residential rental buildings are
depreciated over 27.5 years straight-line. - Commercial real estate buildings are depreciated over 39 years straight-line.
- No matter when during the month depreciable real estate is purchased, it is considered to have been placed in service at mid-month for MACRS depreciation purposes.
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Choose the correct statement regarding tax depreciation.
a. Nonresidential real property is depreciated over 27.5 years.
Ob. Residential real property is depreciated over 39 years.
Oc.
c. Depreciation on real property starts at the beginning of the year in which the property is placed in service.
Od. Nonresidential real property is depreciated over 39 years.
An asset that had a first cost of $80,000 was depreciated according to the MACRS method over a 5-year period. At the end of year 4, it was replaced with a more-advanced system and sold for $15,000. Determine if depreciation recapture or a capital loss was present and, if so, how much.
which of the following statements is not correct?
1) generally accepted accounting principles require that the original cost of a long-term asset continue to appear in the asset account until the disposition of the asset.
2)The book value of a long-term asset is reduced each year as depreciation is recorded Building and trucks are examples of long -term assets
3)Salvage value is computed by subtracting the accumulated depreciation from the cost of a long-term asset.
Chapter 8 Solutions
Income Tax Fundamentals 2020
Ch. 8 - Alice purchases a rental house on August 22,2019,...Ch. 8 - An asset (not an automobile) put in service in...Ch. 8 - An asset (not an automobile) put in service in...Ch. 8 - James purchased office equipment for his business....Ch. 8 - Which of the following statements with respect to...Ch. 8 - Which of the following is not true about the MACRS...Ch. 8 - On July 20,2019, Kelli purchases office equipment...Ch. 8 - Which of the following is not considered a limit...Ch. 8 - In 2019, Ben purchases and places in service a new...Ch. 8 - In 2019, Ben purchases and places in service a new...
Ch. 8 - Prob. 11MCQCh. 8 - Prob. 12MCQCh. 8 - Prob. 13MCQCh. 8 - In 2019, Mary sells for $24,000 a machine used in...Ch. 8 - Prob. 15MCQCh. 8 - Prob. 16MCQCh. 8 - Virginia has business property that is stolen and...Ch. 8 - Pat sells land for $25,000 cash and a $75,000...Ch. 8 - Prob. 19MCQCh. 8 - Prob. 20MCQCh. 8 - Oscar owns a building that is destroyed in a...Ch. 8 - Prob. 22MCQCh. 8 - Prob. 1PCh. 8 - Prob. 2PCh. 8 - 3. Mike purchases a new heavy-duty truck (5-year...Ch. 8 - On March 8,2019, Holly purchased a residential...Ch. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Calculate the following: The first year of...Ch. 8 - During 2019, William purchases the following...Ch. 8 - On February 2,2019, Alexandra purchases a personal...Ch. 8 - On September 14,2019, Jay purchased a passenger...Ch. 8 - Tom has a successful business with $100,000 of...Ch. 8 - Prob. 14PCh. 8 - Annie develops a successful tax practice. She...Ch. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Prob. 20PCh. 8 - Prob. 21P
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