Calculator 2-Which of the following is not an acceptable method of accounting un
ID: 2563137 • Letter: C
Question
Calculator
2-Which of the following is not an acceptable method of accounting under the tax law?
a.The accrual method
b.The cash method
c.The hybrid method
d.All of these choices are acceptable.
e.None of these choices are acceptabl
4- For purposes of taxation of capital gains:
a.Ordinary income tax rates are applied to gains on collectibles.
b.Under the provisions of Section 1245, any gain recognized on the disposition of a Section 1245 asset will be classified as a capital gain.
c.Gains on Section 1231 assets may be treated as long-term capital gains, while losses in some cases may be deducted as ordinary losses.
d.Short-term capital gains are taxed at 5 percent.
3-ABC Corp bought a production machine on January 1, 2014 for $31,250. The company elected out of Section 179 expensing and elected out of claiming bonus depreciation in 2014, and is depreciating the machine using the MACRS accelerated depreciation tables for 5-year property. What is the 2016 depreciation (year 3) deduction for the machine?
a.$12,500
b.$6,000
c.$6,250
d.$10,000
e.None of these choices are correct.
Explanation / Answer
2)It is option D since as per US law any company can follow any of the methods
3)It is option C
4)As per MACRS depreciation schedule the depreciation rate for year 3 is 19.2% so the depreciation fo ryear 3 is
=31250*19.2%=6000
It is option B
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