Chapter 10 Tax – Flashcards
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Tax cost recovery methods do not include
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Capitalization
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Which of the following business assets is not depreciated
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Patent
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An office desk is an example of
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Personal property and Business property
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An example of an asset that is both personal-use and personal property is:
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A computer used solely to monitor the CEO's investments and to complete her Form 1040
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Which of the following is not usually included in an asset's tax basis
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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
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Engine overhaul
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Tax depreciation is currently calculated under what system
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Modified accelerated cost recovery system
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Which is not an allowable method under MACRS
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Sum of the years digits
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Which of the allowable methods allows the most accelerated depreciation
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200 percent declining balance
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Which of the following depreciation conventions are not used under MACRS
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Full-month
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Which depreciation convention is the general rule for tangible personal property
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Half-year
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The MACRS recovery period for automobiles and computers is
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5 years
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Which of the following assets are eligible for §179 expensing
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Used office machinery, Qualified leasehold improvements, A new delivery truck, Used office furniture
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Which of the following assets is eligible for bonus depreciation
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A new delivery truck
