Quiz_4A--Outline_4_and_5_depr_

Quiz_4A--Outline_4_and_5_depr_ - 6) Sam purchases 3-year...

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Quiz 4A, March 24, 2011 Name ____________________________ 1) Marsha bought an office building on 7/1/2010 for $150,000 ($50,000 cost of the land and $100,000 cost of the building). She sold it on 9/12/2012 for $200,000. What is the amount of her depreciation for 2010? 2) Same as above, what is the amount of her depreciation for 2012? 3) Simon purchased only the following assets during the year. She does not elect Section 179 or opt-out of bonus depreciation. For each asset which convention does she use? a. 6/2/2010 Equipment $100,000 ________________ b. 9/4/2010 Land 50,000_________________ c. 12/3/2010 Machinery 400,000_________________ 4) Laura purchased a 5-year asset on 2/9/2010 for $10,000. She sold it on 8/3/2012 for $15,000. She does not elect section 179 or bonus depreciation. What is the amount of her depreciation for 2010? She is required to use the mid-quarter convention. 5) Same as above, what is the amount of her depreciation for 2012?
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Unformatted text preview: 6) Sam purchases 3-year property and uses MACRS for $2000 on March 6, 2007. He sells it on 8/12/2010 for $1000. How much depreciation does he take in 2007 assuming the half-year convention. 7) Same as above, how much depreciation does he take in 2010? 8) Sal sells a personal residence that she bought on 7/4/2005 for $300,000 to her mother on 8/12/2010 for $250,000. What is the amount of her mothers recognized loss? __________ 9) Same as above. Her mother sells the personal residence to a disinterested third party for $325,000. What is the amount of the mothers recognized gain?___________ 10) When an employer reimburses employees under a(n) __________________________ ________________________ he doesnt have to pay payroll taxes on the payments, and the employees dont have to include the payments in their taxable income....
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