Ch 10 T-F without solutions

Ch 10 T-F without - 1 The earlier the depreciation deduction can be taken the greater the present value of the tax savings will be to the taxpayer

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1. The earlier the depreciation deduction can be taken, the greater the present value of the tax savings will be to the taxpayer. 2. While Congress has enacted several different depreciation methods, all currently owned assets are depreciated using the method in effect when the asset was placed in service. 3. The Section 179 expense deduction is allowed on all depreciable and tangible property used in a trade or business. 4. Pedro purchased used delivery equipment costing $400,000 and used computers costing $300,000 (the only assets purchased) that are used in his business. He may allocate his section 179 deduction to either or both assets. 5. MACRS applies to new and used depreciable personal property used for the production of income. 6. Sally purchased new equipment for her consulting business. She allocates the Section 179 deduction among the new assets. One piece of equipment cost $600,000 and was allocated one- half of the allowable Section 179 deduction and therefore has a depreciable basis of $350,000. 7.
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This note was uploaded on 02/22/2012 for the course ACCT 403 taught by Professor White during the Fall '11 term at South Carolina.

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