Reference no: EM13916863
Question 1.) The tax basis of an asset includes:
the fair market value of property received in a non-taxable exchange.
the fair market value of services given in exchange.
the amount of debt relief given in the exchange.
All of the above
Question 2. Question : (TCO 10) In general, an expenditure must be capitalized for tax purposes if:
it creates or enhances an asset with a useful life of one taxable year.
it results in no long-term benefit to the firm.
tax treatment of the expenditure is certain.
None of the above
Question 3. Question : (TCO 10) On December 15, a calendar year taxpayer placed in service $100,000 of five-year recovery property. If this was in addition to another $250,000 of assets placed into service early in the year, it will be subject to: the mid-quarter convention. the mid-month convention. the half-year convention. no convention.
Question 4. Question : (TCO 10) Bent Pretzel Inc. sold a building that it held for investment for several years. In this transaction, Bent Pretzel received land that it will use in its business. The FMV of the building is $80,000 and the value of the land is $80,000 too. The adjusted basis of the building is $55,000 and the land is $30,000.
What is Bent Pretzel's recognized gain?
$55,000
$25,000
$80,000
$0
Question 5. Question : (TCO 10) In a qualifying like-kind exchange, Van Halen exchanges musical equipment with an adjusted basis of $350,000 (fair market value of $300,000) for other musical equipment.
What is his basis in the new equipment?
$200,000
$225,000
$350,000
$230,000
|
Complete the analysis
: Eric's Electronics is moving into new facilities and must determine whether it should retain or replace various fixed assets. Complete the analysis of each of the following transactions.
|
|
Company specializing in sales and maintenance of the exotic
: Exotic Cars Inc. (ECI) is a company specializing in sales and maintenance of the exotic (hence the name) cars. The cars that ECI sells come from multiple sources:
|
|
Prepare the journal entries to create and close the warranty
: Prepare the journal entries to create and close the warranty period for the contingent liability due to sales from February.
|
|
Identify the different types of forecasts
: Identify the different types of forecasts that can be developed for use by a company. Cite examples of how a company might use a particular forecast method and explain why that type of forecast was best suited for that situation.
|
|
Recovery property
: a calendar year taxpayer placed in service $100,000 of five-year recovery property. If this was in addition to another $250,000 of assets placed into service early in the year, it will be subject to: the mid-quarter convention. the mid-month conventi..
|
|
What does the abbreviation utc indicate
: What does the abbreviation UTC indicate? (Use Google and search for UTC definition.) Internationally, time is shown with a 24-hour clock (sometimes called "military time").
|
|
Methane gas and nitrogen dioxide gas
: There are two cylinders containing methane gas and Nitrogen dioxide gas. The volume of these two cylinders re 500cm3 and 700 cm 3 respectively.
|
|
Five steps of hypothesis testing
: A researcher plans a study in which a crucial step is offering participants a food reward. It is important that the three food rewards be equal in appeal. Thus, a prestudy was designed in which participants were asked which of the rewards they pre..
|
|
Can we conclude that brand perception is dependent on age
: A market researcher believes that brand perception of one of the company's products may vary between different groups. After interviewing286 persons, the following data was compiled. Can we conclude that brand perception is dependent on age
|