Chapter 10 Tax – Flashcards
14 test answers
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Which of the following is not usually included in an asset's tax basis
answer
Purchase price, Sales tax, Shipping, Installation costs
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Which of the following would be considered an improvement rather than a routine maintenance
answer
Engine overhaul
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Tax depreciation is currently calculated under what system
answer
Modified accelerated cost recovery system
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Which is not an allowable method under MACRS
answer
Sum of the years digits
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Which of the allowable methods allows the most accelerated depreciation
answer
200 percent declining balance
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Which of the following depreciation conventions are not used under MACRS
answer
Full-month
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Which depreciation convention is the general rule for tangible personal property
answer
Half-year
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The MACRS recovery period for automobiles and computers is
answer
5 years
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question
Which of the following assets are eligible for §179 expensing
answer
Used office machinery, Qualified leasehold improvements, A new delivery truck, Used office furniture
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question
Which of the following assets is eligible for bonus depreciation
answer
A new delivery truck
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