QUESTION 5 Residential realty costing $100,000 was placed in service three years ago. MACRS depreciation for the current year is: $14,286. $3,636….

QUESTION 5

  1. Residential realty costing $100,000 was placed in service three years ago. MACRS depreciation for the current year is:
  2. $14,286.
  3. $3,636.
  4. $3,175.
  5. $2,500.
  6. $2,564.

3 points  QUESTION 6

  1. Nonresidential realty costing $100,000 was placed in service last year. MACRS depreciation for the current year is:
  2. $3,175.
  3. $2,564.
  4. $14,286.
  5. $2,500.
  6. $3,636.

3 points  QUESTION 7

  1. Below are four asset purchases made in 2018:
  2. AssetCostDate of Purchase  Office table    $1,000    January 1, 2018    Office desk    $1,500    September 29, 2018     File cabinet    $2,000    October 15, 2018     Computer    $6,000    December 30, 2018   
  3. Assuming the company has net income of $5,000, what is the maximum Section 179 deduction for these purchases?
  4. $2,500
  5. $0
  6. $10,500
  7. $5,000

3 points  QUESTION 8

  1. Depreciation of fixed assets under GAAP v. for tax purposes is based on:
  2. original cost less salvage value under GAAP v. original cost for tax purposes.
  3. original cost both under GAAP and for tax purposes.
  4. original cost for GAAP v. the original cost less salvage value for tax purposes.
  5. original cost less the salvage value both under GAAP and for tax purposes.

3 points  QUESTION 9

  1. Under MACRS, the recovery period for a passenger auto is:
  2. 3 years
  3. 7 years
  4. 4 years
  5. 5 years

3 points  QUESTION 10

  1. Under MACRS, the recovery period for residential real property is:
  2. 31½ years
  3. 39 years
  4. 7 years
  5. 27½ years

3 points  QUESTION 11

  1. A business places in service $2,640,000 of equipment in 2018. If the company has net income of $900,000, the maximum Section 179 the business can elect in 2018 is:
  2. $0
  3. $860,000
  4. $900,000
  5. $1,000,000
  6. $140,000

3 points  QUESTION 12

  1. Generally, under MACRS, the recovery period for a computer is:
  2. 7 years
  3. 5 years
  4. 4 years
  5. 3 years

3 points  QUESTION 13

  1. A taxpayer places in service $55,000 of 5-year property on August 16 of the current year, and $45,000 of 7-year property on December 2 of the current year. Assuming the taxpayer elects not to take Section 179 or bonus depreciation, which of the following statements is correct with respect to this taxpayer?
  2. The taxpayer uses mid-quarter convention to depreciate both assets
  3. The taxpayer uses the mid-quarter convention to depreciate the 5-year property, but uses the half-year convention to depreciate the 7-year property.
  4. The taxpayer uses the half-year convention to depreciate the 5-year property, but uses the mid-quarter convention to depreciate the 7-year property.
  5. The taxpayer uses half-year convention to depreciate both assets

3 points  QUESTION 14

  1. Depreciation of property other than real property begins in the middle of the quarter in which it is placed in service when more than:
  2. 40% of the total cost of all depreciable property placed in service during the year occurs during the fourth quarter.
  3. 40% of the total cost of Section 179 property placed in service during the year occurs during the fourth quarter.
  4. 25% of the total cost of all depreciable property placed in service during the year occurs during the fourth quarter.
  5. 25% of the total cost of Section 179 property placed in service during the year occurs during the fourth quarter.

3 points  QUESTION 15

  1. Generally, under MACRS, the recovery period for office furniture (e.g., desks) is:
  2. 4 years
  3. 5 years
  4. 7 years
  5. 3 years

3 points  QUESTION 16

  1. If a new passenger auto that costs $50,000 and weighs 5,000 pounds is placed in service in 2018, which of the following is true?
  2. section 179 is limited, but depreciation expense is not
  3. section 179 and depreciation expense are both limited
  4. no limit on section 179 or depreciation expense
  5. depreciation expense is limited, but section 179 is not

3 points  QUESTION 17

  1. A business places $1,640,000 of equipment in service in 2018. If the company has net income of $900,000, the maximum Section 179 the business can elect in 2018 is:
  2. $0
  3. $640,000
  4. $140,000
  5. $900,000
  6. $1,000,000

3 points  QUESTION 18

  1. On May 11 of the current year, your calendar year firm pays $5,000 for new office furniture (7-year property); this is the only asset purchase for the year. The company estimates that the machine will have a salvage value of $1,000. If your firm elects not to take bonus depreciation or Section 179, how much depreciation will the firm claim on its federal income tax return this year?
  2. $5,000
  3. $715
  4. $4,000
  5. $572

3 points  QUESTION 19

  1. Under MACRS, the recovery period for commercial real estate placed in service in 2000 is:
  2. 27½ years
  3. 31½ years
  4. 7 years
  5. 39 years

3 points  QUESTION 20

  1. Real estate must be depreciated using the:
  2. mid-month convention
  3. half-year convention
  4. mid-quarter convention
Calculate your essay price
(550 words)

Approximate price: $

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)
Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more