ACCT323 connect quiz 3
neelQuiz 3
1.
Kip started a wholesale store this year selling bulk peanut butter. In January of this year Kip purchased an initial five tubs of peanut butter for a total cost of $5,000. In July Kip purchased three tubs for a total cost of $6,000. Finally, in November Kip bought two tubs for a total cost of $1,000. Kip sold six tubs by year end. What is Kip's ending inventory under the FIFO cost-flow method?
17. The MACRS recovery period for automobiles and computers is: [removed] 3 years [removed] 5 years [removed] 7 years [removed] 10 years [removed] None of these 18. Each of the following is true except for: [removed] A direct involuntary conversion occurs when property taken under imminent domain is replaced with other property. [removed] Qualified replacement property rules are more restrictive than the like-kind property rules. [removed] An indirect involuntary conversion occurs when property is destroyed and insurance proceeds are used to purchase qualified replacement property. [removed] Losses realized in involuntary conversions are deferred. [removed] All of these are true. 19. Which one of the following is not a requirement of a deferred like-kind exchange? [removed] The like-kind property to be received must be identified within 45 days. [removed] The exchange must be completed within the taxable year. [removed] The like-kind property must be received within 180 days. [removed] A third party intermediary is often used to facilitate the exchange. [removed] All of these. 20. What is the primary purpose of a third-party intermediary in a deferred like-kind exchange? [removed] To facilitate finding replacement property. [removed] To help acquire the replacement property. [removed] To prevent the seller from receiving cash (boot) that will taint the transaction. [removed] To certify the taxpayer's Form 8824. [removed] All of these. 21. Which of the following sections recaptures or recharacterizes only corporate taxpayer's gains? [removed] §291. [removed] §1239. [removed] §1245. [removed] Unrecaptured §1250 gains. [removed] None of these. 22. Which of the following is not true regarding installment sales? [removed] Only gains are eligible for installment sale reporting. [removed] Depreciation recapture is deferred in an installment sale. [removed] The gross profit percentage is needed to determine the annual gain recognized. [removed] Stock sales are ineligible for installment sale treatment. [removed] None of these. 23. Brad sold a rental house that he owned for $250,000. Brad bought the rental house five years ago for $225,000 and has claimed $50,000 of depreciation expense. What is the amount and character of Brad's gain or loss? [removed] $25,000 ordinary and $50,000 unrecaptured §1250 gain. [removed] $25,000 §1231 gain and $50,000 unrecaptured §1250 gain. [removed] $75,000 ordinary gain. [removed] $75,000 capital gain. [removed] None of these. 24. Leesburg sold a machine for $2,200 on November 10th of the current year. The machine was purchased for $2,600. Leesburg had taken $1,200 of depreciation deductions. What is Leesburg's gain or loss realized on the machine? [removed] $800 gain. [removed] $1,000 gain. [removed] $1,200 loss. [removed] $1,400 loss. [removed] None of these. 25. Which of the following is not used in the calculation of the amount realized: [removed] Cash. [removed] Adjusted basis. [removed] Fair market value of other property received. [removed] Buyer's assumption of liabilities. [removed] All of these. Bottom of Form Purchase the answer to view it |
13 years ago
