Question

3 Depreciation of property other than real property begins in the middle of the in which it is placed in service when more than 3. 25% of the total cost of all depreciable property placed in service occurs during the fourth quarter. 40% of the total cost ofproperty less any Section 170 deduction during the year occurs during the fourth quarter. 40% of the total cost of all depreciable property placed in occurs during the fourth quarter 25% of the total cost of Section 179 property placed in occurs during the fourth quarter. a during the year b. placed in service c, d. 4. On May 11, 2012, your calendar year firm purchases for $10.000 a eed asset pure e machine with an estimated salvage value of $1,000. If the machine is the on in 2012 and no Section 179 deduction is taken, what is your firm's deduction for depreciation? a. $6,000 b. $1,429 c. $2,000 d. $5,715 maximum 2012 5. On May 11, 2012, your calendar year firm purchases for $10,000 a used office machine with an estimated salvage value of $1,000. If the machine is the only fixed asset purchased in 2012 and no Section 179 deduction is taken, what is your firm's maximum 2012 deduction for depreciation? a. $6,000 b. $1,429 c. $2,000 d. $5,715 Depreciation of fixed assets under GAAP v. for tax purposes is based on: a. original cost less salvage value under GAAPv.original cost for tax purposes b. original cost for GAAP v. the original cost less salvage value for tax purposes. 6. nal cost less the salvage value both under GAAP and for tax purposes original cost both under GAAP and for tax purposes. d. 7. Generally, under MACRS, the recovery period for a computer is: a. 3 years 4 years C 5 years 7 years 8 Under MACRS, the recovery period for commercial real estate placed in service in 2012 is: 31%years b. 27% years a)

Answer 1