Multiple Choice Questions 1. All of the following types of real property are depreciable except: (a) Warehouses
Question:
Multiple Choice Questions
1. All of the following types of real property are depreciable except:
(a) Warehouses
(b) Land
(c) Office buildings
(d) Test facilities
2. According to information on the IRS website, a taxpayer can take a depreciation deduction as long as the property meets all of the following requirements except:
(a) The taxpayer must own the property.
(b) The taxpayer must use the property in an income-producing activity.
(c) The taxpayer must use the property for personal purposes.
(d) The property must have a determinable useful life of more than 1 year.
3. Under the General Depreciation System (GDS) of asset classification, any asset that is not in a stated class is automatically assigned a recovery period of:
(a) 5 years
(b) 7 years
(c) 10 years
(d) 15 years
4. All of the following statements about the Alternative Depreciation System (ADS) are true except:
(a) The half-year convention applies.
(b) Salvage value is neglected.
(c) The recovery periods are shorter than in GDS.
(d) The straight line method is required.
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
Step by Step Answer:
1 b Land 2 c The taxpayer mu...View the full answer
