Question

33. Wh at is the maximum tax deduction for the machine in 2017 (Year 6)? a. $0, because the machine has a 5-year recovery period b. $576 c. $3,226 d. $6,451 On October 20 of the current year, a company with a December 31 year-end purchases a factory for $150,000, which includes $50,000 for the land. What is first-year depreciation for this asset under MACRS? 34. d, $2,461 a.$535 Which of the following is not subject to annual IRS depreciation limits? b, $53,500 c. $111 35. a. An unmodified company van weighing 5,000 pounds b. An unmodified company van weighing 7,500 pound c. A company car used by the company's sales manager d. A company car used by the company's president Use the following information to answer Questions 36-42: A company that uses a calendar year purchases an asset with a historical cost of $250,000, a residual value of $5,000 and an estimated life of 5 years. 36. Under the straight-line method, the depreciation rate is... a, 40% b.20% c.10% d. 5% 37. If the asset is acquired on September 30, 2016, first-year depreciation under the straight-line method is a. $50,000 c. $25,000 If the asset is acquired on January 1, 2016, first-year depreciation under the b. $49,000 d. $12,250 38. double-declining balance method is . .. a. 40% If the asset is acquired on January 1, 2016, and is depreciated under the double-declining balance method, second-year depreciation is b. 20% с. 25% d. 5% 39. a. $100,000 b. $60,000 c. $50,000 d. $25,000

Answer 1

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