Investment property under the cost model would require ? Tested for impairment only Measured at fairvalue at year end To be depreciated only To be depreciated and tested for impairment annually
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- 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.Investment property under the cost model would require ? - -Tested for impairment only -To be depreciated and tested for impairment annually -To be depreciated only -Measured at fairvalue at year end When inventory is held on consignment it should be? - -Reported as cost of goods sold -Recorded as inventory -Derecognized -Reported as purchase the Following are classified under PPE Except? - -Machinery -All are PPE -Building -LandWhich 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.
- 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.What is the proper accounting treatment to record improvements to leased property for a lessee? Group of answer choices Capitalize and depreciate over the lesser of the life of the improvement or lease term. Expense in the year in which expenses are incurred. Expense in the year in which expenses are incurred and increase basis of asset. Capitalize and depreciate over the greater of the life of the improvement or lease term.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.
- Under IFRS, which of the following statements describes the fair value model for accounting for investment properties? Question 12 options: a) All investment properties are remeasured at fair value at each reporting date. b) Depreciation is recorded over the investment property’s useful life. c) Gains or losses arising from changes in fair value are recognized in other comprehensive income in the period in which they arise. d) Accumulated gains and losses are recognized in profit or loss in the period in which the investment property is derecognized.Under IFRS, disclosure for an investment property must include which of the following? Question 11 options: a) For investment properties measured using the fair value model: additions during the period, net gains or losses, and transfers to and from inventories. b) For investment properties measured using the fair value model: whether fair values used were based on valuations by an independent valuator, useful lives of properties, and transfers to and from inventories. c) For investment properties measured using the cost model: the depreciation method used, the useful lives of the properties, depreciation, and net gains or losses from fair value adjustments. d) For investment properties measured using the fair value model: amounts recognized in profit or loss for rental income and direct operating expenses, useful lives of investment properties.Which of the following is a requirment regarding replacement property for a deferred like kind exchange A Replacement proepty must be identified within 3 years before the transfer of the TP propery. B. The tax return for the year of the trnsfer mqy no be filed before the replacemnt property is acquired C the value of identified replacemnt properties may not exceed 500% the aggre
- The following would affect the net income on the last year of the useful life of a long-lived asset with a related dismantling cost, except a.) Salvage value of the long-lived asset b.) Interest expense on the decommissioning liability c.) Depreciation of the long-lived asset d.) Gain or loss on the settlement of decommissioning liabilityDepreciationa. is calculated by the department that uses the fixed asset.b. allocates the cost of the asset over its useful life.c. is recorded weekly.d. results in book value approximating fair market value.Which amortization method should be used for intangibles that are amortized? the straight-line method; all others are inappropriate a method based on an annual review for impairment any method is appropriate a method based on the expected pattern of benefits to be produced by the asset