Madrid Metro and Fair Market Value Essay Example
Accounting 344: Howard Bunsis
Second Exam Fall 2011
The exam is open text book. That is the only source of material that you can bring. You cannot bring your class outlines or assignment solutions. Calculators are allowed, but the use of text in calculators is prohibited. Bring blue books or paper, as the exam will be done in this manner. Brief notes in the margin of your text are ok. However, writing solutions to entire problems in your text will be considered a violation.
Put all answers in your blue books or blank paper. Do not put your answers on the exam. Show your work whenever possible.
Q1=5; Q2=13; Q3=6; Q4=7; Q5=10; Q6=13; Q7=10; Q8=11; Q9=25
1. Harry’s business is raising and harvesting peaches. On March 10, 2011, Harry purchased 10,000 new peach trees at a cost of $60,000. Harry does not elect to expense assets under Section 179. Determine the depreciation deduction for 2011.
2. Audra acquires the following new five-year class property in 2011:
Asset Acquisition Date Cost
A January 10 $106,000
B July 5 70,000
C November 15 450,000
Total $626,000
Audra elects Section 179 for Asset B and Asset C (not for asset A). Audra’s taxable income from her business would not create a limitation for purposes of the Section 179 deduction. Audra elects not to take additional first-year depreciation. Determine her depreciation deduction for the year.
3. Hazel purchased a new business asset (five-year asset) on October 4, 2011, at a cost of $100,000. This was the only asset Hazel placed in service in 2011. Hazel does not take Section 179 or additional first year depreciation. On August 20, 2012, Hazel sold the asset. Determine depreciation in 2012 for the asset.
4. During 2011, Jen (age 66) furnished more than 50% of the support of the following persons:
• Jen’s current who has no income and is not claimed by someone else as a dependent.
• Jen’s stepson (age 18) who lives with her and earns
Second Exam Fall 2011
The exam is open text book. That is the only source of material that you can bring. You cannot bring your class outlines or assignment solutions. Calculators are allowed, but the use of text in calculators is prohibited. Bring blue books or paper, as the exam will be done in this manner. Brief notes in the margin of your text are ok. However, writing solutions to entire problems in your text will be considered a violation.
Put all answers in your blue books or blank paper. Do not put your answers on the exam. Show your work whenever possible.
Q1=5; Q2=13; Q3=6; Q4=7; Q5=10; Q6=13; Q7=10; Q8=11; Q9=25
1. Harry’s business is raising and harvesting peaches. On March 10, 2011, Harry purchased 10,000 new peach trees at a cost of $60,000. Harry does not elect to expense assets under Section 179. Determine the depreciation deduction for 2011.
2. Audra acquires the following new five-year class property in 2011:
Asset Acquisition Date Cost
A January 10 $106,000
B July 5 70,000
C November 15 450,000
Total $626,000
Audra elects Section 179 for Asset B and Asset C (not for asset A). Audra’s taxable income from her business would not create a limitation for purposes of the Section 179 deduction. Audra elects not to take additional first-year depreciation. Determine her depreciation deduction for the year.
3. Hazel purchased a new business asset (five-year asset) on October 4, 2011, at a cost of $100,000. This was the only asset Hazel placed in service in 2011. Hazel does not take Section 179 or additional first year depreciation. On August 20, 2012, Hazel sold the asset. Determine depreciation in 2012 for the asset.
4. During 2011, Jen (age 66) furnished more than 50% of the support of the following persons:
• Jen’s current who has no income and is not claimed by someone else as a dependent.
• Jen’s stepson (age 18) who lives with her and earns