TAx chapter 8 quiz

Attempt 1

Written: Oct 9, 2014 3:43 PM - Oct 9, 2014 3:52 PM

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Ch. 8 TF

Question 1 1 / 1 point

All listed property is subject to the substantiation requirements of § 274.

True

False

Question 2 1 / 1 point

Residential rental real estate includes property where 80% or more of the net rental revenues are from nontransient dwelling units.

True

False

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Question 3 1 / 1 point

Any § 179 expense amount that is carried forward is subject to the business income limitation in the carryforward year.

True

False

Question 4 1 / 1 point

If startup expenses total $53,000 in 2014, $51,000 is amortized over 180 months.

True

False

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Question 5 1 / 1 point

Percentage depletion enables the taxpayer to recover more than the cost of an asset.

True

False

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Ch. 8 MC

Question 6 0 / 1 point

In 2013, Gail had a § 179 deduction carryover of $30,000. In 2014, she elected § 179 for an asset acquired at a cost of $115,000. Gail’s § 179 business income limitation for 2014 is $140,000. Determine Gail’s § 179 deduction for 2014.

$25,000.

$35,000.

$40,000.

$55,000.

None of the above.

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Question 7 0 / 1 point

Which of the following assets would be subject to cost recovery?

A painting by Picasso hanging on a doctor’s office wall.

An antique vase in a doctor’s waiting room.

Landscaping around the doctor’s office.

a., b., and c.

None of the above.

Question 8 0 / 1 point

Mary purchased a new five-year class asset on March 7, 2014. The asset was listed property (not an automobile). It was used 60% for business and the rest of the time for personal use. The asset cost $90,000. Mary made the § 179 election. The income from the business before the § 179 deduction was $60,000. Mary does not take additional first-year depreciation (if available). Determine the total deductions with respect to the asset for 2014.

$10,800.

$18,000.

$30,800.

$60,000.

None of the above.

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Question 9 0 / 1 point

On May 2, 2014, Karen placed in service a new sports utility vehicle that cost $60,000 and has a gross vehicle weight of 6,300 lbs. The vehicle is used 60% for business and 40% for personal use. Determine the cost recovery for 2014. Karen wants to maximize her deductions.

$7,200.

$25,000.

$26,800.

$37,000.

None of the above.

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Question 10 0 / 1 point

Howard’s business is raising and harvesting peaches. On March 10, 2014, Howard purchased 10,000 new peach trees at a cost of $60,000. Howard does notmake an election to expense assets under § 179 and does not take additional first-year depreciation (if available). Determine the cost recovery deduction for2014.

$1,532.

$3,000.

$12,000.

$31,500.

None of the above.