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11 Cards in this Set
- Front
- Back
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36. Tax cost recovery methods do not include:
A. Amortization B. Capitalization C. Depletion D. Depreciation E. All of the above are tax cost recovery methods |
B
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37. Which of the following is not depreciated?
A. Automobile B. Building C. Patent D. Machinery E. All of the above are depreciated |
C
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38. Which of the following is not usually included in an asset's tax basis?
A. Purchase price B. Sales tax C. Shipping D. Installation costs E. All of the above are included in an asset's tax basis |
E
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39. Which of the following would be considered an improvement rather than a routine maintenance?
A. Oil change B. Engine overhaul C. Wiper blade replacement D. Air filter change |
B
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40. Tax depreciation is currently calculated under what system?
A. Sum of the years digits B. Accelerated cost recovery system C. Modified accelerated cost recovery system D. Straight line system E. None of the above |
C
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41. Which is not an allowable method 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 above are allowable methods under MACRS |
D
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42. Which of the allowable methods allows the most accelerated depreciation?
A. 150 percent declining balance B. 200 percent declining balance C. Straight line D. Sum of the years digits E. None of the above allow accelerated depreciation |
B
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43. How is the recovery period of an asset determined?
A. Estimated useful life B. Treasury regulation C. Revenue Procedure 87-56 D. Revenue Ruling 87-56 E. None of the above |
C
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44. Which of the following depreciation conventions are not used under MACRS?
A. Full-month B. Half-year C. Mid-month D. Mid-quarter E. All of the above are used under MACRS |
A
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45. Which depreciation convention is the general rule for tangible personal property?
A. Full-month B. Half-year C. Mid-month D. Mid-quarter E. None of the above are conventions for tangible personal property |
B
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46. The MACRS recovery period for automobiles and computers is:
A. 3 years B. 5 years C. 7 years D. 10 years E. None of the above |
B
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