QUESTION 8Generally speaking, taxpayers have incentives to use the fastest possible method to depreciate assets. Which of the following statements is notconsistent with this taxpayer objective?CA business chooses 150n declining balance method to compute its MACRS depreciation rather than the default 200 declining balarce methodOA business owner uses 100w bonus depreciation to write off all current yelb qualifed asset additionsO Racetrack owners depreciate tracks over 7 years rather than 15 yearsORAsmall business owner claims the largest possible armoun of Section 179 immediate expensing

Depreciation indicates the reduction in the hysterical cost of the asset acquired by the company…

QUESTION 8 Generally speaking taxpayers have incentives to use the fastest possible method to depreciate assets. Which of the following statements is not consistent with this taxpayer objective? CAA business chooses 150 decining balance method to compute its MACRS depreciation rather than the default 200 dectining balance method. Abusiness owner uses 10ow bonus depreciation to write off all current yequalified asset additions OCRacetrack owners depreciate tracks over 7 years rather than 15 years 0BAmall business owner cdams the largest possible armount of Section 179 immediate expensing

QUESTION 8 Generally speaking taxpayers have incentives to use the fastest possible method to depreciate assets. Which of the following statements is not consistent with this taxpayer objective? CAA business chooses 150 decining balance method to compute its MACRS depreciation rather than the default 200 dectining balance method. Abusiness owner uses 10ow bonus depreciation to write off all current yequalified asset additions OCRacetrack owners depreciate tracks over 7 years rather than 15 years 0BAmall business owner cdams the largest possible armount of Section 179 immediate expensing

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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A1
31 When a noncurrent asset is classified as held for sale a. depreciation ceases at the date it is classified as held for sale b. depreciation continues until the asset’s actual sale c. depreciation continues until its carrying value exceeds its fair value less cost to sell d. it is almost certain that the asset will be sold in a short period of time.
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QUESTION 33 Peacock Corporation sold equipment during the current year. Its tax gain on the equipment was $4,000 and its book gain on the equipment was $2,000. Peacock will enter $2,000 as a subtraction on Schedule M-1 of Form 1120. Oa. True. Ob. False. QUESTION 34 Which of the following items is an addition on Schedule M-17 Oa. Tax depreciation in excess of book depreciation. Ob. Proceeds of life insurance paid on death of key employee. Oc. Excess of capital losses over capital gains. Od. Tax-exempt interest. O e. None of the above.
Multiple Company had the following liabilities on December 31, 2021:Accounts payable after deducting debit P 500,000balances in supplier’s accounts of P100,000 Accrued liabilities 150,000Note payable – due March 31, 2022 1,000,000Note payable – due May 1, 2022 800,000Bonds payable – due December 31, 2023 2,000,000On March 1, 2022 before the 2021 financial statements were issued, the note payable of P1,000,000 was replaced by an 18-month note for the same amount. The entity is considering similar action on the P800,000 note due on May 1, 2022. The financial statements were issued on March 31, 2022. 1. Compute the total non-current liabilities as of December 31, 2021 2. Compute the total current liabilities as of December 31, 2021
19. A taxpayer engaged in the practice of his profession bought a brand-new motor vehicle in the amount of Php 5 Million. Which is FALSE? S1: Depreciation expense can be claimed if the asset shall be used in business. S2: The motor vehicle, if used in business, shall be classified as an ordinary asset. Group of answer choices d. Both are true b. Only S2 is false a. Only S1 is false c. Both are false
Problem 1: Use the facts below to answer Problem 1 Questions 1-3 Evergreen Corporation, a calendar year, accrual basis taxpayer, requires a new piece of equipment for use in its manufacturing business. The company would like to determine whether it would be cost beneficial to invest in the equipment and has asked you to help with some of the calculations. The equipment will cost $100,000 and qualifies as a 3 year asset under the MACRS classification. Evergreen will purchase the equipment on January 1, 2019, use the equipment for 3 years, and sell it in October of 2021. Evergreen estimates that it could sell the equipment for $15,000 in 2021. Assume that bonus depreciation and the Sec. 179 expensing option are not available. Problem 1 Question 1: Calculate the total depreciation deductions Evergreen will take on the equipment for 2019, 2020, and 2021 assuming Evergreen sells the equipment in 2021. a. $68,520 b. $85,185 c. $90,739 d. $92,590
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Question 34
1. Excess of tax depreciation over book depreciation $ 208,600 2. Accrual, for book purposes, of estimated loss contingency frompending lawsuit that is expected to be settled in 2020. The losswill be deducted on the tax return when paid. ( 46,900 ) 3. Accrual method used for book purposes and installment methodused for tax purposes for an isolated installment sale of an investment. 224,500 $ 386,200 In analyzing the temporary differences, you find that $ 30,700 of the depreciation temporary difference will reverse in 2020, and $ 115,300 of the temporary difference due to the installment sale will reverse in 2020. The tax rate for all years is 20%.Indicate the manner in which deferred taxes should be presented on Sage Company’s December 31, 2019, balance sheet.
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4 When should a company create a valuation allowance for a deferred tax asset? O When taxable income is greater than reported income O When there is less than a 50% probability that a company will fail to realize a portion of the asset O When there is more than a 50% probability that a company will fail to realize a portion of the asset O When reported income is greater than taxable income W