Please solve this ASAP!Which of the following is NOT correct?i. Initial allowance is claimable in the year the qualifying expenditure is incurred; however, it can be deferred to another year.ii. Annual allowance is not given in the year of disposal.iii. Annual allowance may be granted if a qualifying asset is temporarily out of use. iv. Capital allowance is granted instead of depreciation for all assetsa. iiand ivb. i onlyc. i, and ivd. ii and iii Which of the following is NOT correct?i. Initial allowance is claimable in the year the qualifying expenditure is incurred; however, it can be deferred to anotheryear.ii. Annual allowance is not given in the year of disposal.iii. Annual allowance may be granted if a qualifying asset is temporarily out of use.iv. Capital allowance is granted instead of depreciation for all assets.a.ii and ivb. i onlyc. i, and ivd.ii and iii

Capital allowances and depreciation appear to be two tax-deduction techniques that businesses can…

Please solve this ASAP! Which of the following is NOT correct? i. Initial allowance is claimable in the year the qualifying expenditure is incurred; however, it can be deferred to another year. ii. Annual allowance is not given in the year of disposal. iii. Annual allowance may be granted if a qualifying asset is temporarily out of use. iv. Capital allowance is granted instead of depreciation for all assets a. iiand iv b. i only c. i, and iv d. ii and iii

Please solve this ASAP! Which of the following is NOT correct? i. Initial allowance is claimable in the year the qualifying expenditure is incurred; however, it can be deferred to another year. ii. Annual allowance is not given in the year of disposal. iii. Annual allowance may be granted if a qualifying asset is temporarily out of use. iv. Capital allowance is granted instead of depreciation for all assets a. iiand iv b. i only c. i, and iv d. ii and iii

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 14DQ

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Similar questions

Which of the following is NOT correct? i. Initial allowance is claimable in the year the qualifying expenditure is incurred; however, it can be deferred to another year. ii. Annual allowance is not given in the year of disposal. iii. Annual allowance may be granted if a qualifying asset is temporarily out of use. iv. Capital allowance is granted instead of depreciation for all assets.
a. how much should TRUE recognize as gain or loss on extinguishment? b. how much should TRUE recognize as interest expense for the year ended, December 31, 2021?
Which of the following may not form part of the regular itemized deductions from the gross income? * Allowance for depreciation under cash basis Repairs and maintenance Losses NOLCO None of the above
Which one of the following statement about encumbrance is correct? a. Encumbrances are equivalent to expenditures and encumbrances outstanding at the end of a year should be reported as assets b. None of the options c. Encumbrances are equivalent to expenditures and encumbrances outstanding at the end of a year should be reported as liabilities d. Encumbrances are recorded at the estimated cost of goods ordered or services contracted for. The subsequent amount recognized as expenditures upon receipt of the goods and services may differ from the encumbered amount.
Depreciation on rental property is an A. expense deductible against income B. out-of-pocket expense to the owner. C. Item which must be capitalized. D. Itemized one-time deduction.
Which of the following creates a taxable temporary- difference? I. Prepaid expenseII. Estimated liabilities Ill. Unearned incomeIV. Installment receivable Choices: I, II, and IV II and IV I, II and III I and IV
Which of the following temporary differences results in a deferred taxasset in the year the temporary differences originates? I. Accrual forproduct warranty liability II. Subscriptions received in advance. III. Prepaidinsurance expense. A. I and II onlyB. II onlyC. III onlyD. I and III only
Which of the following statements with respect to the depreciation of property under MACRS is incorrect? Under the half-year convention, one-half year of depreciation is allowed in the year the property is placed in service. If a taxpayer elects to use the straight-line method of depreciation for property in the 5 -year class, all other 5 -year class property acquired during the year must also be depreciated using the straight-line method. In some cases, when a taxpayer places a significant amount of property in service during the last quarter of the year, real property must be depreciated using a mid-quarter convention. Real property acquired after 1986 must be depreciated using the straight-line method. The cost of property to which the MACRS rate is applied is not reduced for estimated salvage value.
Explain how the following transactions result in taxable /deductible temporarydifference:a. Interest revenue. (3 marks)b. Depreciation. (3 marks)c. Development costs. (3 marks)d. Retirement benefit costs. (3 marks)e. Research costs. (3 marks)
Describe the three different methods used to calculate the periodic depreciation allowances for financial reporting?
Which of the following is a valid statement regarding "assets held for sale"? X Depreciation continues while the assets are being held for sale. Assets intended for sale within a period of twelve months from the statement of financial position date are classified as current assets. No maintenance costs shall be reported in the income statement during the period in which the asset is held for sale. No further loss is taken up on the decline in the fair value of the asset from the date it is classified as held for sale until the date of actual disposal.
8. The profit or loss section or the statement of profit or loss shall include the following line items, excepta. Gains and losses on distribution of non-cash assets to owners.b. Revenue, presenting separately interest revenue calculated using the effective interest methodc. A single amount for the total of discontinuedoperationsd. Impairment losses (including reversals of impairment losses or impairment gains) determined in accordance with PAS 36. 9. In accordance with PAS 1, the profit or loss section or the statement of profit or loss shall include line item for gains and losses from derecognition ofa. Financial assets measured at fair value through profit or loss.b. Financial assets measured at fair value through other comprehensive income.c. Financial assets measured at amortized cost. d. All of these.