MULTIPLE CHOICE ARE 4 points cech the tollowing is not a requirement for an asset to be depreciable? must wear out or get used up It must have a life longer than 1 year a) lt must have a basis (nitial (d) it must be held with the intent to produce income purchase plus installation cost) greater than $1,000 ir apartment depreclation dent bing is bought in Apra 2010 for $1,000,000 and sold in October 2014, how much is the year using regular MACRS? )$36,360 b) $10,605 c) $25,760 d) $28,785 When uaing a Benefit- Cost analysis to evaluate muttiple alternatives, which of the is to evaluate mutiple alternatives, which of the following approaches is acceptable? (a) Incremental approach only (b) Ranking approach only (c) Either Incremental or Ranking (d) Neither Incremental nor Ranking life is $4,000. If the . The depreciation deduction for year 11 of a 15-year MACRS property with a 20-year useful fe of the asset is estimated to be $5,000 and MACRS-GDs is used to calculate thedepr for year 11, what was the initial cost of the asset? (a) $80,000 (b) $72,682 (c) $67,682 (d) $42,105 5. The depreciation deduction for year 11 of a 15-year MACRS property with a 20-year useful life is 54,o salvage value of the asset was estimated to be zero and straight line depreciation was used to ca depreciation deduction for year 11, what was the initial cost of the asset? $4,000. If the lculate the (a) $80,000 (b) $72,682 (c) $67,682 (d) $42,105 6. The correctly calculated taxes due on a corporate taxable income of $13,000,000 is closest to which of the following? (a) $4,420,000 (b) $4,550,000 (c) $4,450,000 (d) $3,400,000 7. The average tax rate on a corporate income of $87,000 is closest to which of the following? (a) 34% (b) 25% (c) 20.5% (d) 15% 8. If project X is contingent on project Y, what is implied? A. If Y is chosen, X must also be chosen B. If X is chosen, Y must also be chosen C. IfX is chosen, Y can not be chosen D. If Y is chosen, X can not be chosen