12. The half-year convention generally applies to... A.) all assets being depreciated under MACRS. B.) assets other than buildings being depreciated under MACRS. C.) assets other than passenger autos being depreciated under MACRS. D.) assets other than buildings and passenger autos being depreciated under MACRS.

12. The half-year convention generally applies to... A.) all assets being depreciated under MACRS. B.) assets other than buildings being depreciated under MACRS. C.) assets other than passenger autos being depreciated under MACRS. D.) assets other than buildings and passenger autos being depreciated under MACRS.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 9RE

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Similar questions

Which of the following statements are TRUE? a. MACRS-GDS uses a half-year convention, whereas MACRS-ADS does not. b. The half-year convention has the effect of depreciating over n − 1 full years (2, 3, . . . , n), and two half-years (1 and n + 1). c. The investment’s property class establishes the number of years over which the cost basis is to be recovered (depreciated). d. In general, MACRS-GDS has a longer recovery period (depreciation period) than MACRS-ADS.
32. Under MACRS, which one of the following is not considered in determining depreciation for tax purposes? A) Half-year convention B) Cost of asset C) Salvage value D) Property class
If a depreciable property is revalued at the middle of the current year, how is the depreciation expense for the year determined when the entity has a calendar year-end? a.Depreciation for the first half of the year is based on cost and for the second half on revalued amount. b.Depreciation for the year is based on the average of the depreciation based on cost and on revalued amount. c.Depreciation for the entire year is based on revalued amount. d.Depreciation for the entire year is based on cost.
13 The entity shall measure a non-current asset that ceases to be classified as held for sale at the lower of carrying amount before the asset was classified as held for sale, adjusted for any depreciation, amortization or revaluations that would have been recognized had the asset not been classified as held for sale, and its value in use at the date of the subsequent decision not to sell. True or False
Which of the following statements is true for real rental property that has been depreciated using the mid-month convention in the year of disposition? (a) The depreciation in the year of disposition will be the same as the depreciation in a regular year. (b) The deductible amount will be half the depreciation determined for the full year. (c) The deductible amount will be determined by the month in which the asset is disposed. (d) Using information from the MACRS percentage tables, the calculation is made based on a short tax year.
Which of the following statements with respect to the depreciation of property under MACRS is incorrect? Under the half-year convention, one-half year of depreciation is allowed in the year the property is placed in service. If a taxpayer elects to use the straight-line method of depreciation for property in the 5 -year class, all other 5 -year class property acquired during the year must also be depreciated using the straight-line method. In some cases, when a taxpayer places a significant amount of property in service during the last quarter of the year, real property must be depreciated using a mid-quarter convention. Real property acquired after 1986 must be depreciated using the straight-line method. The cost of property to which the MACRS rate is applied is not reduced for estimated salvage value.
Assume the same information as in RE11-3, except that Albany Corporation purchased the asset on April 1, Year 1. Calculate the depreciation for Year 1 and Year 2 using the double-declining-balance method. Round to the nearest dollar.
How are intangible assets with an indefinite life treated? A. They are depreciated. B. They are amortized. C. They are depleted. D. They are tested yearly for impairment.
( Appendix 7A) Impairment Listed below is information related to three assets reported in the financial statements of Grant Company: Required: For each scenario, indicate whether the asset has been impaired and, if so, the amount of the impairment loss that should recorded.
Using the information from EA7, calculate depreciation using the straight-line method.
Under U.S. GAAP, in a year in which the fair value of an asset rises, should a company record depreciation expense for that asset? Why?
Demonstrate how the MACRS depreciation percentages are calculated by theIRS using the half-year convention?