197 intangibles:Oa. Include intangible assets created and not purchased by the taxpayerOb. Are amortized based on current fair market value rather than their actual cost.Oc. Must be amortized over a 15 year life, regardless of their actual life.а.Od. Do not include purchased goodwill or going-concern value. Grape Pack Corp bought a $600,000 apartment building in June of 2020. Of the purchase price, $104,950 is allocated to the value of the land. What isthe maximum amount of depreciation that the company can claim in 2021 (Year 2) for the building?Oa. You cannot depreciate property costing over $500,000Оb. $21.816Oc. $25,000 under the election to expense business propertyOd. $9,752Oe. $18,000

Intangible assets are those assets which are not physically existed. In simple, these are those…

197 intangibles: Oa. Include intangible assets created and not purchased by the taxpayer Ob. Are amortized based on current fair market value rather than their actual cost Oc. Must be amortized over a 15 year life, regardless of their actual life. Od. Do not include purchased goodwill or going-concern value.

197 intangibles: Oa. Include intangible assets created and not purchased by the taxpayer Ob. Are amortized based on current fair market value rather than their actual cost Oc. Must be amortized over a 15 year life, regardless of their actual life. Od. Do not include purchased goodwill or going-concern value.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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5. How should accounting fees for acquisition be treated? A. Expensed in the period of acquisition B. Capitalized as part of acquisition cost C. Deferred and amortized D. Deferred until the company is disposed of or wound-up 6.The excess of the price paid over the fair value of the net identifiable assets acquired should be recognized as A. Goodwill to be amortized periodically for 20 yearS. B. Expenses immediately C. Goodwill not subject to amortization but subject to impairment D. Goodwill to be amortized for 40 years 7.Under PFRS 3 (Business Combinations) A. Both direct and indirect costs are to be capitalized B. Both direct and indirect costs are to be expensed C. Direct costs are to be capitalized and indirect costs are to be expensed D. Indirect costs are to be capitalized and direct costs are to be expensed
What would be the tax treatment of a superficial loss? a. Permanently denied. b. Immediately deductible. c. Deducted from the adjusted cost base (ACB) of the reacquired property. d. Added to the ACB of the reacquired property for the purposes of determining the future capital gain or loss when the property was sold.
12 In a taxable asset acquisition, amounts allocated to Class VI and Class VII assets will likely be amortized by the buyer over how many years: a. 5 years under IRC 167 b. 20 years under IRC 168 c. 15 years under IRC 197 d. 39.5 years under IRC 212
elearning.act.edu.om/mod/quiz/attempt.php?attempt%3D2417948cmid-909918page-2@ Muzna Salim Mohammed AISaadi The expected amount that an entity would currently obtain from disposal of the asset after deducting the estimated costs of disposal fair value recoverable amount residual value carrying amount
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(33) Amortization expense is recorded for: A. A franchise established with a contract that allows for unlimited extensions. B. Intangible assets with a finite life. C. Intangible assets with an indefinite life. D. Goodwill
7
The fair value of an asset stood at OMR 300 and cost to sell these assets in the market is OMR 40, The preset value of future cash inflows from the asset is OMR 270. What is the recoverable amount? O a. OMR 300. O b. OMR 40. OC OMR 270. O d. OMR 260.
H2.
The undiscounted future net cash flow is used as a benchmark to determine any impairment loss on which of the following types of intangible assets? O Limited life intangibles. O Indefinite life intangibles other than goodwill. O Goodwill. O Indefinite life intangibles.