Question 1

The factor for determining the cost recovery for eligible real estate under MACRS, in the year of disposition, is taken from the month of the disposition.

Accepted Answer

A) True 
 B)False

Question 2

Grape Corporation purchased a machine in December of the current year. This was the only asset purchased during the current year. The machine was placed in service in January of the following year. No assets were purchased in the following year. Grape Corporation's cost recovery would begin:

Accepted Answer

A)  In the current year using a mid-quarter convention.
B)  In the current year using a half-year convention.
C)  In the following year using a mid-quarter convention.
D)  In the following year using a half-year convention.
E)  None of the above.F) A) and E)
G) None of the above

Question 3

During the past two years, through extensive advertising and improved customer relations, Orange Corporation estimated that it had developed customer goodwill worth $500,000. For the current year, determine the amount of goodwill Orange Corporation may amortize.

Accepted Answer

A)  $16,667
B)  $26,667
C)  $33,333
D)  $100,000
E)  None of the aboveF) C) and E)
G) A) and B)

Exam 8: Depreciation, Cost Recovery, Amortization, and Depletion

Grape Corporation purchased a machine in December of the current year. This was the only asset purchased during the current year. The machine was placed in service in January of the following year. No assets were purchased in the following year. Grape Corporation's cost recovery would begin:

Correct Answer
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During the past two years, through extensive advertising and improved customer relations, Orange Corporation estimated that it had developed customer goodwill worth $500,000. For the current year, determine the amount of goodwill Orange Corporation may amortize.

Correct Answer
verified

The factor for determining the cost recovery for eligible real estate under MACRS, in the year of disposition, is taken from the month of the disposition.

Correct Answer
verified

Exam 8: Depreciation, Cost Recovery, Amortization, and Depletion

Grape Corporation purchased a machine in December of the current year. This was the only asset purchased during the current year. The machine was placed in service in January of the following year. No assets were purchased in the following year. Grape Corporation's cost recovery would begin:

Correct AnswerverifiedShow Answer

During the past two years, through extensive advertising and improved customer relations, Orange Corporation estimated that it had developed customer goodwill worth $500,000. For the current year, determine the amount of goodwill Orange Corporation may amortize.

Correct AnswerverifiedShow Answer

The factor for determining the cost recovery for eligible real estate under MACRS, in the year of disposition, is taken from the month of the disposition.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified