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Unformatted text preview: M/C A-D 20. CPA-02059 ARE Nov 94 #39 Corr Ans: D PM#30 R 3-01 Page 27 How is the depreciation deduction of nonresidential real property, placed in service in 1994, determined
for regular tax purposes using MACRS?
a. Straight-line method over 40 years.
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Becker CPA Review, PassMaster Questions
Lecture: Regulation 3 b. 150% declining-balance method with a switch to the straight-line method over 27.5 years.
c. 150% declining-balance method with a switch to the straight-line method over 39 years.
d. Straight-line method over 39 years.
Choice "d" is correct. Nonresidential realty is depreciated over 39 years straight-line if placed in service
after May 1993. CPA-02060 Type1 M/C A-D 21. CPA-02060 ARE Nov 95 #14 Corr Ans: C PM#31 R 3-01 Page 37 Dart Corp., a calendar year domestic C corporation, is not a personal holding company. For purposes of
the accumulated earnings tax,...
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