FinalReviewF09E110[1]

FinalReviewF09E110[1] - Final Review Session Fall-09...

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Final Review Session Fall-09 Engineering 110 December 4, 2009
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ADMINISTRATIVE 1. Seat assignments 1. NO CELL PHONES 1. Bring a calculator 1. Format – multiple choice questions ~ 25 1. 40% of your grade for the course 1. Cumulative exam with emphasis on the 2 nd half
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. 1 Know the basic definition of what a depreciable asset is (used for business purposes to produce income, useful life over 1 year, and is used up, depleted, or becomes obsolete) 1. Land is not depreciable 1. Know how to find book value at a given point in time 1. Know straight line depreciation 1. Know how MACRS generally works (eg. formula, salvage value assumed to be 0) CHAPTER 11 – Depreciation = = t to 1 j j t d - basis Cost BV N S B d t - = t t r B d × =
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1. Remember that depreciation is an ACCOUNTING concept and BOOK VALUE does not necessarily represent MARKET VALUE 1. Know Asset Disposal (only relevant if there is a transaction): A. Asset disposed of at a market value greater than current book value but less than cost basis (B) ordinary gain (also “depreciation recapture”) the gain is taxed at the normal rate A. Asset disposed of at a market value greater than the cost basis “extraordinary” or “capital” gain taxed at the capital gains rate A. Asset disposed of at a market value less than current book value loss tax benefit / write-off 8. We are about depreciation because of TAXES depreciation expense is tax deductible (as is disposal for less than current book value) 9. Do not worry about SOYD or Double digit declining or ADS depreciation CHAPTER 11 – Depreciation (Con’t)
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1. Individual taxes just know that Gross Income less retirement contribution = adjusted gross income (AGI); AGI less personal exemption and less either
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This note was uploaded on 02/09/2011 for the course ENGR 110 taught by Professor . during the Spring '10 term at UCLA.

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FinalReviewF09E110[1] - Final Review Session Fall-09...

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