hich of the following is classified as deprecated listed property Equipment place in servic and dispose in the same year Inventory consisting of finished goods available for sale in a taxable business A small pick up truck used by tax payer predominantly for business purposes but also used occasionally for personal purposes A vacant piece of land held for investment

hich of the following is classified as deprecated listed property Equipment place in servic and dispose in the same year Inventory consisting of finished goods available for sale in a taxable business A small pick up truck used by tax payer predominantly for business purposes but also used occasionally for personal purposes A vacant piece of land held for investment

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter8: Depreciation And Sale Of Business Property

Section: Chapter Questions

Problem 12MCQ

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Similar questions

Which of the following is classified as , depreciable listed property is it equipment placed in service and dispose at the same year or inventory consisting of finished goods available for sale in taxpayers business, Or a small pick up truck used by the taxpayers for predominantly For business purposes but also use occasionally for personal purposes or is it a vacant piece of land held for investment
Indicate whether the following items are Section 1245 or Section 1250 property or, if neither, indicate what type of property they are considered to be (e.g., capital asset, Section 1231 asset). (Remember that Section 1245 and Section 1250 properties are sub-categories of depreciable Section 1231 property.) Assume all the items have been held long-term. Equipment used in the business Personal automobile Truck used in the business Escalator used in the business Inventory Residential rental housing Nonresidential real property depreciated under the straight-line method Leasehold of Section 1245 property
Which of the following will cause a difference in book depreciation and federal depreciation? Choosing to depreciate a class of property using straight-line on the federal return and straight-line on the books. Depreciating property with a useful life of less than one year. Electing to take a Section 179 deduction on eligible property. Placing property in service mid-year.
An entity classified a noncurrent asset accounted for under the costmodel as held for sale at the current year-end. The entity decided at theend of the following year not to sell the asset but to continue to use it. Theasset should be measured at the end of the following year at A. The lower of carrying amount and recoverable amountB. The higher of carrying amount and recoverable amountC. The lower of carrying amount on the basis that it had never been classified as held forsale and recoverable amountD. The recoverable amount
Select all items which are correct. Land is listed on the depreciation schedule although it is not depreciated because it is an asset. Land is listed on the depreciation schedule because land is an asset depreciated- like buildings and equipment. Under both GAAP and tax law, depreciation of an asset begins when the asset has been acquired and placed in service. Under both GAAP and tax law, depreciation of an asset begins when the asset has been acquired- no matter if the asset has been placed in service.
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.