1 a)A taxpayer owns an automobile that is converted to business use five years after...
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Accounting
1 a)A taxpayer owns an automobile that is converted to business use five years after purchase. This asset is eligible for cost recovery deductions.
True/False
1 b)All of the following assets are eligible for cost recovery deductions, except:
a-Computer used in the taxpayers business
b-Farmland
c-Semi truck purchased for farm operation
d-Rental property building purchased by the taxpayer
1 c)Office furniture and fixtures would fall into which MACRS recovery period?
a-3 year
b-7 year
c-5 year
d-10 year
1 d) Joe owns a machine that originally cost $5000 that he has fully depreciated. He sells the machine for $2000. Which is true of the treatment of the gain on sale.
a-Joe will recognize a capital gain on the sale of the asset
b-Joe will recognize ordinary income on the sale due to recapture rules
c-None of the above.
d-Joe will recognize no gain on the sale of the asset
1 e) Residential real estate would fall into which MACRS recovery period?
a-39 year
b-15 year
c-27.5 year
d-10 year
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