ACC/307 ACC307 ACC 307 WEEK 8 QUIZ

ACC 307 WEEK 8 QUIZ

 1.

TF Qu. 30 Businesses may immediately expense research ...

Businesses may immediately expense research and experimentation expenditures or they may elect to capitalize these costs and amortize them using the straight-line method over a period of not less than 60 months.

 2.

TF Qu. 4 An asset's capitalized cost basis includes only the...

An asset's capitalized cost basis includes only the actual purchase price; whereas expenses to purchase, prepare the asset for use, and begin using the asset are immediately expensed.

 3.

MC Qu. 73 Racine started a new business in the current...

Racine started a new business in the current year. She incurred $52,000 of start-up costs. If her business started on November 23rd of the current year, what is the total expense she may deduct with respect to the start-up costs for her initial year, rounded to the nearest whole number?

$52,000

None of these

$5,522

$2,555

$3,544

4.

MC Qu. 59 Simmons LLC purchased an office building an...

Simmons LLC purchased an office building and land several years ago for $250,000. The purchase price was allocated as follows: $200,000 to the building and $50,000 to the land. The property was placed in service on October 2. If the property is disposed of on February 27 during the 10^th year, calculate Simmons' maximum depreciation in the 10^th year:

$5,128

$641

$909

$7,346

None of these

5.

MC Qu. 60 Which of the following assets are eligible f...

Which of the following assets are eligible for §179 expensing?

A new delivery truck

Qualified leasehold improvements

Used office machinery

All of these

Used office furniture

6.

MC Qu. 51 Beth's business purchased only one asset...

Beth's business purchased only one asset during the current year. Beth placed in service machinery (7-year property) on December 1 with a basis of $50,000. Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation):

None of these

$7,145

$10,000

$1,785

$2,500

 7.

MC Qu. 62 Littman LLC placed in service on July 29, 20...

Littman LLC placed in service on July 29, 2015 machinery and equipment (7-year property) with a basis of $600,000. Littman's income for the current year before any depreciation expense was $100,000. Which of the following statements is true to maximize Littman's total depreciation expense for 2015? (Assume that the 2014 §179 limits are extended to 2015.)

Littman's §179 expense will be greater than $100,000.

Littman should take §179 expense equal to the maximum $500,000.

Littman should take no §179 expense.

None of these.

Littmen's §179 expense will be less than $100,000.

8.

MC Qu. 56 Anne LLC purchased computer equipment (5-yea...

Anne LLC purchased computer equipment (5-year property) on August 29 with a basis of $30,000 and used the half-year convention. During the current year, which is the fourth year Anne LLC owned the property, the property was disposed of on January 15. Calculate the maximum depreciation expense:

$1,728

$432

$1,874

$3,456

None of these

 9.

MC Qu. 57 Poplock LLC purchased a warehouse and land d...

Poplock LLC purchased a warehouse and land during the current year for $350,000. The purchase price was allocated as follows: $275,000 to the building and $75,000 to the land. The property was placed in service on August 12. Calculate Poplock's maximum depreciation for this first year, rounded to the nearest whole number:

None of these

$2,648

$4,774

$3,371

$3,751

10.

MC Qu. 69 Arlington LLC purchased an automobile for $4...

Arlington LLC purchased an automobile for $40,000 on July 5, 2015. What is Arlington's depreciation expense for 2015 if its business use percentage is 75 percent (ignore any possible bonus depreciation)?

$2,370

$6,000

$8,000

None of these

$3,160