1. What rate should be used when calculating the after-tax future value of investment with a constant rate of return that is taxed annually?
a. annual before tax rate of return
b. annual after tax rate of reurn
c. marginal tax rate
d. preferential tax rate.
e. average tax rate.
2. Which of the following sections recaptures or recharacterizes only corporate taxpayer's gains?
a. section 291
b. Section 1239
c. Section 1245
d. Unrecaptured section 1250 gains.
e. None of these.
3.Which of the following would be considered an improvement rather than a routine maintenance?
a. Oil change
b. Engine overhaul
c. Wiper blade replacement
d. Air filter change
4.Which of the following is not used in the calculation of the amount realized:
a. Cash
b. Adjusted Basis
c. Fair market value of other property received
d. Buyer's assumption of liabilities
e. All of these.
5. Which of the following is not depreciated?
a. Automobile
b. Building
c. Patent
d. Machinery