Chapter 12 Explation - 1 Explanation A patent not acquired in connection with the acquisition of assets constituting a trade or business or a

Chapter 12 Explation - 1 Explanation A patent not acquired...

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FFA EA Book Reference: CH 12 Business Property Subsection: Business expenses deductions and credits Subject: Depreciation, amortization, IRC section 179, and depletion 2. Explanation: The recapture period is five years beginning with the earliest loss in the five-year period. Correct Answer: C FFA EA Book Reference: CH 12 Business Property Subsection: Business Assets Subject: Disposition of depreciable property 3. Explanation: Because the home office is not exclusively used for business, the business use of the room cannot be claimed for depreciation or other deductions. Correct Answer: D FFA EA Book Reference: CH 12 Business Property Subsection: Analysis of financial records
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Subject: Depreciation and amortization 4. Explanation: Section 1250 property includes buildings and their structural components. Section 1245 property includes machines and parts thereof that are integral to manufacturing or production. Correct Answer: A FFA EA Book Reference: CH 12 Business Property Subsection: Business Assets Subject: Disposition of depreciable property
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