Q29 If a property is partly use by the owner for own use and the other part is held for earning rentals or capital appreciation, then: Select one: a. The entire property is investment property b. The owner occupied property is investment property c. The part held for earning rentals or capital appreciation, if it can be sold or leased out separately shall be classified as investment d. The property cannot be classified as investment property

Q29 If a property is partly use by the owner for own use and the other part is held for earning rentals or capital appreciation, then: Select one: a. The entire property is investment property b. The owner occupied property is investment property c. The part held for earning rentals or capital appreciation, if it can be sold or leased out separately shall be classified as investment d. The property cannot be classified as investment property

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 15DQ

See similar textbooks

Similar questions

What is the meaning of the following:- IAS 40 paragraph 32A, An entity may: (a) choose either the fair value model or the cost model for all investment property backing liabilities that pay a return linked directly to the fair value of, or returns from, specified assets including that investment property; and (b) choose either the fair value model or the cost model for all other investment property, regardless of the choice made in (a).
26 Which of the following is not a characteristics of an investment property? a. land and/or building b. held to earn rentals or for capital appreciation c. held by an owner or a lessee under finance lease d. always accounted for using the fair value model
Which of the following statements correctly describes accounting for investment properties? Question 5 options: a) ASPE contains specific guidance for accounting for investment properties, whereas IFRS does not. b) It is possible for only a portion of a property to be considered an investment property. c) A building that is solely occupied by the owner is an investment property. d) The cost of an investment property includes the day-to-day costs of operating the property.
Which one of the following is not true concerning the treatment of investment properties under LKAS 40? Select one: a. If an investment property is held at fair value, this must be applied to all of the entity's investment property. b. A gain or loss arising from a change in the fair value of an investment property should be recognized in other comprehensive income c. Following initial recognition, investment property can be held at either cost or fair value d. An investment property is initially measured at cost, including transaction costs.
J6. Which of the following statements is correct regarding rental properties? A. Each rental property purchased that cost $50,000 or more must be placed in a separate CCA class. B. Rental losses from CCA can be used to shield income from employment or from business. C. A corporation whose principle business is property rental or leasing cannot create a loss by CCA. D. CCA deductions can create or increase a net loss from all of a taxpayer’s rental properties combined.
1. When reclassification is made from owner occupied property to investment property that will be carried at fair value, any excess of the fair value over the carrying amount at the date of transfer is a. ignored. b. recognized as a gain in profit or loss, c. credited to asset revaluation surplus. d. recorded as a credit to a liability account2. Which of the following are valid statements regarding measurement of investment property? I. The best evidence of fair value is current price in an active market for similar property in the same location and condition.II. When items of investment property are measured at fair values, any movement in fair value is credited to other comprehensive income under the heading revaluation surplus.III. An entity shall continue to measure an investment property at fair value until its disposal if it has previously valued the property at fair value.IV. Transaction costs directly attributable to acquisition of investment property are capitalized as…
2. Which of the following qualifies for classification as an investment property? a. Property that is currently being developed for future use as investment property b. Property that is leased out to another entity under a finance lease c. Building being rented from another entity and leased out under various operating sub-leases d. Investment property that is currently being developed for future use as owner-occupied property
Which one of the following is not true concerning the treatment of investment properties under IAS 40? A Following initial recognition, investment property can be held at either cost or fair value. B If an investment property is held at fair value, this must be applied to all of the entity's investment property. C An investment property is initially measured at cost, including transaction costs. D A gain or loss arising from a change in the fair value of an investment property should be recognised in other comprehensive income.
Q21 Which of the following is NOT a step in impairment testing? Select one: a. Sell the asset after if the fair value is greater than the recoverable amount b. Calculate the asset’s carrying amount in the books of the entity c. Calculate the recoverable amount of the asset d. Assess whether there are circumstances that may indicate that the asset should be impaired.
Refer to the definition of assets on page 204. Discuss howa leased building might qualify as an asset of the lessee(tenant) under this definition.
Question 78 of 85. Choose the response that correctly describes a condition, or conditions, that must be met for property to be considered depreciable. The property must be an item that will eventually wear out, get used up, become obsolete, or otherwise lose its value. The taxpayer must place the property in service and dispose of it within the same year. The taxpayer must either rent or own the property and use it in their business or in an income-producing activity. The useful life of the property must not exceed one year.
Which statement on property, plant and equipment (PPE) is true? * a. PPE items may include assets lacking physical substance b. Assets held for sale shall be classified as PPE while unsold c. As long as an item of PPE provides benefit, regardless of measurability of its cost, it shall be recognized in the books d. When the amount is immaterial, an item may be expensed outright rather than capitalized as PPE e. none of the above