Question 1

Bonnie Jo purchased a used camera (five-year property)  for use in her sole proprietorship. The basis of the camera was $2,600. Bonnie Jo used the camera in her business 60 percent of the time and used it for personal purposes the rest of the time during the first year. Calculate Bonnie Jo's depreciation deduction during the first year, assuming the sole proprietorship had a loss during the year. (Bonnie did not place the property in service in the last quarter.)

Accepted Answer

A)   $260
B)   $312
C)   $520
D)   $2,600
E)   None of the choices are correct.F) C) and D)
G) B) and E)

Question 2

The alternative depreciation system requires both a slower method of recovery and longer recovery periods.

Accepted Answer

A) True 
 B)False

Question 3

Which is not an allowable method under MACRS?

Accepted Answer

A)   150 percent declining balance
B)   200 percent declining balance
C)   Straight-line
D)   Sum-of-the-years'-digits
E)   All of the choices are allowable methods under MACRS.F) A) and D)
G) B) and D)

Question 4

Which depreciation convention is the general rule for tangible personal property?

Accepted Answer

A)   Full-month
B)   Half-year
C)   Mid-month
D)   Mid-quarter
E)   None of the choices are conventions for tangible personal property.F) A) and E)
G) B) and C)

Question 5

Business assets that tend to be used for both business and personal purposes are referred to as listed property.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following would be considered an improvement rather than routine maintenance?

Accepted Answer

A)   Oil change
B)   Engine overhaul
C)   Wiper blade replacement
D)   Air filter changeE) A) and C)
F) C) and D)

Exam 2: Property Acquisition and Cost Recovery

Correct Answer
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Which is not an allowable method under MACRS?

Correct Answer
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Which of the following would be considered an improvement rather than routine maintenance?

Correct Answer
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Business assets that tend to be used for both business and personal purposes are referred to as listed property.

Correct Answer
verified

The alternative depreciation system requires both a slower method of recovery and longer recovery periods.

Correct Answer
verified

Which depreciation convention is the general rule for tangible personal property?

Correct Answer
verified

Exam 2: Property Acquisition and Cost Recovery

Correct AnswerverifiedShow Answer

Which is not an allowable method under MACRS?

Correct AnswerverifiedShow Answer

Which of the following would be considered an improvement rather than routine maintenance?

Correct AnswerverifiedShow Answer

Business assets that tend to be used for both business and personal purposes are referred to as listed property.

Correct AnswerverifiedShow Answer

The alternative depreciation system requires both a slower method of recovery and longer recovery periods.

Correct AnswerverifiedShow Answer

Which depreciation convention is the general rule for tangible personal property?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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