NJCU ACCT604 Ch 8 quiz

·
Question
1
2
out of 2 points

In
a farming business, MACRS straight-line cost recovery is required for all
fruit bearing trees.

· Question 2
2
out of 2 points

Property
which is classified as personalty may be depreciated.

· Question 3
2
out of 2 points

Diane
purchased a factory building on April 15, 1993, for $5,000,000. She sells the
factory building on February 2, 2013. Determine the cost recovery deduction
for the year of the sale.

· Question 4
0
out of 2 points

Which
of the following assets would be subject to cost recovery?

· Question 5
0
out of 2 points

Under
the MACRS straight-line election for personalty, only the half-year
convention is applicable.

· Question 6
2
out of 2 points

OnJune 1of the current year, Tab converted a
machine from personal use to rental property. At the time of the conversion,
the machine was worth $90,000. Five years ago Tab purchased the machine for
$120,000. The machine is still encumbered by a $50,000 mortgage. What is the
basis of the machine for cost recovery?

· Question 7
2
out of 2 points

Mary
purchased a new five-year class asset on March 7, 2013. The asset was listed
property (not an automobile). It was used 60% for business and the rest of
the time for personal use. The asset cost $900,000. Mary made the § 179
election. The income from the business before the § 179 deduction was
$600,000. Mary does take additional first-year depreciation. Determine
the total deductions with respect to the asset for 2013.

· Question 8
2
out of 2 points

When
lessor owned leasehold improvements are abandoned because of the termination
of the lease, a loss can be taken for the unrecovered basis.

· Question 9
0
out of 2 points

Percentage
depletion enables the taxpayer to recover more than the cost of an asset.

· Question 10
2
out of 2 points

For
personal property placed in service in 2013, the § 179 maximum deduction is
limited to $500,000.