Term
| In general, a taxpayer must capitalize the cost of any asset with a useful life of more than __________. |
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Definition
In general, a taxpayer must capitalize the cost of any asset with a useful life of more than __________.
1 year |
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Term
| Amortization is the straight-line recovery of the cost of intangibles. Amortization of goodwill is allowed over _______ years. |
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Definition
Amortization is the straight-line recovery of the cost of intangibles. Amortization of goodwill is allowed over _______ years.
15 years |
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Term
| Depreciation on an apartment building acquired and placed in service on May 28 of this year at a cost of $2,000,000 (the land cost an additional $400,000) will amount to _________? |
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Definition
$45,555
2,000,000 / 330 = 6,060.60 * 7.5= 45,555 |
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Term
| On November 7 of this year, a calendar year taxpayer, placed in service $250,000 of 7 - year recovery property. If this is the only property placed in service during the year and Section 179 and bonus depreciatiokn are not available what amount of depreciation can be taken for the year of acquistion? |
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Definition
8,928
250,000*1/7*2*1.5/12 |
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Term
| Cost depletion amounted to $200,000. Percentage depletion amounted to $210,000. Which amount is deductible for the year? |
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Definition
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Term
| Alice purchased a business for $100,000 on June 1, of this year and immediately began operation of that business. The purchase price was allocated to assets using the residual method. As a result, machinery and equipment was allocated $60,000 in cost, inventory and other identifiable assets amounted to $30,000 and goodwill was allotted $10,000 of cost. What amount amortization is allowed for the year? |
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Definition
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Term
| Construct a depreciation table for a 5-year MACRS asset costing $20,000 and indicate the amount of depreciation for year four. |
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Definition
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Term
| Taxpayer purchased $800,000 of depreciable machinery and equipment during the year. What is the maximum amount of Sec. 179 depreciation that can be taken for the year? |
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Definition
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Term
Taspayer purchased $2.4 million of depreciable machinerya nd equipment during te year. What is the maximum amount of Sec. 179 depreciation that can be taken for the year?
What amount of bonus depreciation can be taken for the year? |
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Definition
Sec. 179 $100,000
Bonus: 1.15 mil |
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Term
Attorney an accounting fees, stock issuance and other costs amounting to $41,000 were capitalized as organization costs in January of this year. The corporation started operation in July of the year what amount of amortization may be taken by the corporation for this first year of operations?
Now assue organizations cost totaled $53,000. What amount of amortization may be taken by the corporation for the first year of operations? |
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Definition
Situation 1)
$6,200
(5000+1,200)
Situation 2)
$3700
(2,000 + 1,700) |
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Term
An indicidual taxpayer has the following gains and losses during the year. You sold stocks held for more than 1 year for gains of $12,000 and losses of $5,000. You sold stocks held for less than 1 year for a loss $2,000. You sold business property for a $15,000 that orginally cost $10,000. During the three years you held the property you took $3,000 of depreciation (SL).
How much is Long-term capital Gains?
If a C-corp how much LTCG? |
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Definition
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Term
| Taspayer, a sole proprietor purchased a machine for $15,000 and depreciated it using an accellerated method over several years. The basis at the time of sale was $6,000. The basis would have been $9,000 if straight line depreciation had been used. The machine was sold for $17,000. How much Sec. 1231 gain does the taxpayer report as a result of these transactions? |
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Definition
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Term
LTCG 5,000
LTCL 3,000
STCG 5,000
STCL 10,000
1231G 10,000
1231L 4,000 |
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Definition
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Term
LTCG 3,000
LTCL 5,000
STCG 10,000
STCL 5,000
1231G 4,000
1231L 10,000 |
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Definition
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Term
LTCG 3,000
LTCL 20,000
STCG 19,000
STCL 1,000
1231G 8,000
1231L 1,000 |
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Definition
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Term
LTCG 20,000
LTCL 3,000
STCG 1,000
STCL 19,000
1231G 1,000
1231L 8,000 |
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Definition
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Term
Taxpayer, a proprietor, acquired a building for $1,000,000 several years ago. The basis at the time of sale is $600,000. The basis would have been $700,000 if straight line depreciation had been used. The sales price is $1,200,000. What amount of Sec 1231 gain will be reported?
How much Sec. 1231 gain will be reported by the taxpayer if the taxpayer is a C corp. |
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Definition
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Term
| Net Section 1231 gains may be converted to ordinary income if there was a recognized Section 1231 loss within the last ___ years. |
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Definition
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Term
In May 2005, Joyce transferred property with an adjusted basis of $60,000 (FMV $70,000) to her newly formed corporation in exchange for all of the stock.
What will be the basis of the stock she holds? |
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Definition
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Term
| alex exchanged machinery with a basis of $40,000 and a fair market value of $60,000 in exchange for 50 shares and cashe of 10,000. Bruce contributed $50,000 in cash for 50 shares in a qualified 351 transaction. What is the basis of th emachinery to the corporation? |
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Definition
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Term
Ajax Corporation had its plant destroyed by fire in 2003. The plant had a basis of $500,000 before the fire and insurance proceeds of $750,000 were received in 2004. By what date must Ajax Corporation reinvest in order to avoid paying tax?
What is Ajax Corporation's basis in its new plant assumin git time invests $800,000 in it? |
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Definition
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Term
Charles sold 100 shares of stock in Xebo corporation on Dec. 23, 2004 for $8,000. The stock was purchased for $10,000 in 2000. On Jan. 15, 2005 Charles decided that he had made a mistake and, believing that the stock of Xebo would increase in price he purchased 100 shares of stock for $8,500. charles will recognize a loss of how much for 2004?
What is Charles bsis in the stock he purchased in 2005? |
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Definition
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Term
| Alber has agree to exchange investment land with a basis of $10,000 and a car (used in business ) with a basis of $5,000 and a fair market value of $10,000 for a newer car (for business use) with a basis of $40,000 and a FMV of $50,000. Albert has held both the land and car for more than two years. What basis will Albert Have in the newest car follwing this transaction? |
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Definition
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Term
| The Crasco Company's manufacturing plant burned to the ground in Jan. of this year. This manufacturing facility was primarily devoted to production of copper pots and other copper decorator items and included csting and forging equipment. INsurance proceeds of $200,000 were received by the company in March. The plant had orginally cost the company $300,000 but had been depreciated (SL) over the years so that its basis at the time it was destroyed was only $140,000. Crasco invested $190,000 in a new plant in July. The new plant is also devoted to castings and forging copper pots and decorator items. What income or loss must Crasco recognize as a reslut of these transactions? |
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Definition
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