Chapter 17 Class Questions 2011

Chapter 17 Class Questions 2011 - Bob Ryan DePaul...

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Bob Ryan DePaul University Class Questions Accounting 380 Tax Treatment of Individuals and Property Transactions Chapter 17 – Property Transactions: Sec. 1231 and Recapture Provision True/False 1. Section 1231 applies to the sale or exchange of business properties, but not to business casualties. 4. Section 1231 property includes nonpersonal use property where casualty losses exceed casualty gains for the taxable year. 18. Section 1245 generally recaptures as ordinary income the portion of the gain that is equal to the sale price minus the original cost. 20. For § 1245 recapture to apply, accelerated depreciation must have been taken on the property. Multiple Choice 2. Which of the following assets held by a retail business is a § 1231 asset? a. Inventory. b. A machine used in the business and held less than one year. c. A factory building used in the business and held more than one year. d.
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This note was uploaded on 01/27/2012 for the course ACC 548 taught by Professor Ryan during the Spring '11 term at DePaul.

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Chapter 17 Class Questions 2011 - Bob Ryan DePaul...

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