When an asset is sold, the difference between its salvage value and ending UCC remains in the asset pool and continues to create CCA tax shields for Blank______. Multiple choice question. as long as the pool continues for seven years for one year for three years
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When an asset is sold, the difference between its salvage value and ending UCC remains in the asset pool and continues to create CCA tax shields for Blank______.
as long as the pool continues
for seven years
for one year
for three years
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- In March 2019, Helen Carlon acquired used equipment for her business at a cost of 300,000. The equipment is five-year property for regular tax depreciation purposes. a. If Helen depreciates the equipment using the method that will produce the greatest deduction for 2019 for regular income tax purposes, what is the amount of the AMT adjustment? b. Draft a letter to Helen regarding the choice of depreciation methods. Helens address is 500 Monticello Avenue, Glendale, AZ 85306.Which of the following statements are TRUE? a. MACRS-GDS uses a half-year convention, whereas MACRS-ADS does not. b. The half-year convention has the effect of depreciating over n − 1 full years (2, 3, . . . , n), and two half-years (1 and n + 1). c. The investment’s property class establishes the number of years over which the cost basis is to be recovered (depreciated). d. In general, MACRS-GDS has a longer recovery period (depreciation period) than MACRS-ADS.Alice purchases a rental house on August 22,2019, for a cost of $174,000. Of this amount, $100,000 is considered to be allocable to the cost of the home, with the remaining $74,000 allocable to the cost of the land. What is Alice's maximum depreciation deduction for 2019 using MACRS? $2,373 $1,970 $1,364 $1,061 $1,009
- The depreciated value of the washing machine can be modeled by the equation V= _______ + __________t. $ 1045 Washing machine is depreciated for tax purposes $ 95 per year. V = depricated value and t number of years since purchse dateneed help with this questionAn asset used in a 4-year project falls in the 5-year MACRS class, for tax purposes. The asset has an acquisition cost of $20,349,349 and will be sold for $7,887,127 at the end of the project. If the tax rate is 0.29, what is the aftertax salvage value of the asset (SVNOT)? Modified ACRS depreciation allowances TABLE 9.7 Year 12345678 2 3-Year 33.33% 44.45 14.81 7.41 Property Class 5-Year 20.00% 32.00 19.20 11.52 11.52 5.76 7-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46
- Marisela acquired a brand logo from Enrique industries for $10,000. She plans to renew this trademark indefinitely every year for 10 years. What advice would you offer her as it relates to the recognition of amortization of this intangible asset. The intangible asset would not be amortized given its planned indefinite life. The intangible asset would be amortized at $1,000 each year.I want answer this questionIf an item is capitalized why do you think different depreciation methods are allowed? Does the depreciation method chosen impact Net Income in the short term? What about over the life of the asset? Assume you have an asset with original cost of $150,000 and accumulated depreciation of $30,000 when you spend $10,000 on the asset. If the $10,000 is an ordinary repair what is the Book Value Before and the Book Value after the $10,000 expenditure? If the $10.000 expenditure is an Extraordinary Repair (extends the life of the asset) and is recorded as a debit to Accumulated Depreciation and a credit to Cash What is the Book Value Before and the Book Value after the $10,000 expenditure? if the expenditure is a Betterment (improves the function of the asset) and is recorded as a debit to the asset and a credit to Cash. What is the Book Value Before and the Book Value after the $10,000 expenditure?
- Verify the 5- and 7-year property class percentages byapplying the 200% DB approach to a piece of equipmentwith a nominal value of $1,000. For the 7-year propertyclass, in what year is the switch from 200% DB to StraightLine? Only half of the first and last years are considered inthe computations. This means that for a 5-year class property,instead of deducting 100% × (2/5) = 40% in the firstyear, only half (40%/2 = 20%) is deducted.Expert need your adviceAn asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $7,800,000 and will be sold for $1,860,000 at the end of the project. What is the book value of the equipment at the end of Year 4? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Book value If the tax rate is 25 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Aftertax salvage value