A gain on the disposition of Section 1245 property is treated as ordinary income to the extent of: Excess accelerated depreciation allowed or allowable over the depreciation figured for the same period using the straight-line method. Excess appreciated value over depreciation allowed or allowable using the straight-line method. The difference between the amount realized over the cost of the property. Depreciation allowed or allowable (not to exceed the realized gain).

Q: The following are deductions from items of income, except: *   Cost of sales or service Regular…

A: 1) Cost of sales or service refers to the direct cost of producing the goods sold by a company. It…

Q: If the “fair value less cost to sell” of a noncurrent asset held for sale is lower than its carrying…

A: Impairment of an asset is required when there are indication that an impairment loss may have…

Q: (R) The balance sheet elimination for an intercompany profit in land involves the deduction of the…

A: The Balance sheet, also known as the statement of financial position, is one of the three primary…

Q: To calculate the an part of the calcula

A: Amount realized means all forms of compensation received by the seller from the buyer. It can be in…

Q: TRUE OR FALSE? 1. Assets of the component held for sale shall be depreciated. 2. The income or loss…

A: The assets are treated as held for sale when the company intends to sell the assets in the near…

Q: Describe to Stan what it means to capitalize an expenditure. What is the general rulefor determining…

A:

Q: The debit sale for sales tax paid on the purchase of a plant asset would be included in  a. The…

A: Purchase of plant asset simply means the acquisition of a long-term asset for business use.

Q: In case of depreciable assets are revalued, the provision for depreciation is based on (A) Market…

A: Revaluation of depreciable assets is the process of reevaluating and lowering an organization's…

Q: True or False Any net income obtained from selling a depreciated property according to its last…

A: Fixed assets are those assets which are held by the business for longer period of time. Depreciation…

Q: 11 In a taxable asset acquisition, the seller would likely pay ordinary income taxes on the gain…

A: The company's aim will be to increase the profitability of the company. The profits can be arrived…

Q: Why is the cost of certain kinds of property not recoverable at all by way of de-preciation,…

A: Cost of some assets are not recoverable because of the main reason that these assets do not qualify…

Q: 26. What is the general formula for calculating the gain or loss realized on the sale or other…

A: The gain or loss on the sale of the property can determine with the help of the difference between…

Q: Under IAS 36 Impairment of Assets, impairment test for an individual asset requires that the…

A: IAS 36 provide for the impairment of assets and states that assets must not be carried in balance…

Q: Explain how the following transactions result in taxable /deductible temporarydifference:a. Interest…

A: The objective of this question is to understand how certain transactions can result in taxable or…

Q: The depreciable amount is also called the _________________. Select one alternative: carrying…

A: Depreciable amount is the cost of an asset minus its residual value.

Q: nder IFRS, disclosure for an investment property must include which of the following

A: The investment property is the property that is held with an intention to earn rental income. It…

Q: Neither the date the property is acquired nor the date it is disposed of count in determining the…

A: Holding period starts from the date after the acquired date and ends on sale date of asset

Q: Which of the following items is not charged against the income of an estate? a. Ordinary repairs…

A: Lets understand the basics. As per basics accounting rules, expense should be charged against the…

Q: A deduction for percentage depletion is allowed even though the entire cost of the asset has been…

A: Depletion: It refers to the process of proportionately distributing the cost of the extracting…

Q: gain from the sale or exchange of property which is not a capital asset

A: Second option is wrong because gross income is the income before allowing deductions. Third option…

Q: What is the treatment of any gain on a subsequent increase in the fair value less cost of disposal…

A: Subsequent will increase in truthful price. A gain for associated consequent increase in truthful…

Q: S1: Special Assessments shall form part of the cost of land. S2: Cost of option to buy a property…

A: S1: Special Assessments shall form part of the cost of land. This statement is true. Special…

Q: Select all that are true with respect to depreciation. Depreciation is a cash flow outflow at the…

A: Form 1040 Schedule 1 is used to report certain types of income that are not listed on the main 1040…

Q: How much is the additional loss, related to the return of the asset to its original classification…

A: Held for Sales How to account for non-current assets held for sale is described in IFRS 5…

Q: Match the concept that closely describes a particular depreciation method. Choose the correct answer…

A: Lets understand the basics. Double declining balance method is a accelerated depreciation method…

Q: The purpose of providing for depreciation in the statement of comprehensive income is to: O a.…

A: Depreciation refers to a decrease in value of asset over its useful life due to factors such as…

Q: Depreciation on rental property is an A. expense deductible against income B. out-of-pocket…

A: Depreciation When the fixed asset purchased by a company reduces its value over the period of time,…

Q: What are the two major treatments of a superficial loss on a sale and repurchase of identical…

A: The capital gain and loss are realized when the non-registered security is sold in the market at a…

Q: Gains and losses arising from the retirement or disposal of an item of property, plant and equipment…

A: ACCORDING TO AS 10 PROPERTY , PLANT AND EQUIPMENT  THE GAINS AND LOSSES ARISING FROM THE…

Q: rty classifed as held for sale are presented separately as current asset. True or False?

A: Solution: Assets held for sale are those assets which the company intends to sell. These held for…

Q: Depreciation expense is considered as allowable deduction Select one: True False

A: Depreciation expenditure is the amount depreciated for a specific period (e.g., quarter or year),…

Q: Select all items which are correct.     Land is listed on the depreciation schedule although it is…

A: Ans. Land is a non-depreciable asset. Since, the value of land appreciates it is never depreciated.…

Q: What would be the tax treatment of a superficial loss?

A: A: Permanently denied is incorrect because a superficial loss is not permanently denied, but rather…

Q: Bonus depreciation reduces the adjusted basis of property in the same manner that regular MACRS…

A: The Modified Accelerated Cost Recovery System (MACRS) is the system of depreciation for the current…

Q: In all cases, net property, plant and equipment (PP&E) should be calculated as the gross PP&E less…

A: Solution: Gross PP &E  = Cost of purchase of PPE Accumulated depreciation = Depreciation…

Q: the depreciation method that is allowable under the income tax act is referred to as straight- line,…

A: The depreciation method that is allowable under the income tax act is referred to as "capital cost…

Q: MACRS depreciation typically creates deferred tax liabilities early in the life of an asset. True or…

A: The modified accelerated cost recovery system (MACRS) is a depreciation system used for tax purposes…

Q: With regards to depreciation, which of the following is not true? Straight Line depreciation…

A: Depreciation is an accounting technique used to spread out the cost of a tangible item over its…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.