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Which of the following statements with respect to the depreciation of real property under MACRS is correct?

a.Assuming the property is not disposed of during the year, the depreciation deduction for the second year of use of the real property will be greater than the depreciation deduction in the first year.

b.Real property is depreciated using a mid-quarter convention.

c.In some cases, where a significant amount of property is acquired during the last quarter of the taxpayer's tax year, the taxpayer may be required to use a mid-quarter convention in calculating depreciation on real property.

d.Only one-half year of depreciation is allowed in the year of acquisition of real property, regardless of the actual date the property is placed in service.

e.None of these choices are correct.

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Cork Oak Corporation purchased a heavy-duty truck (not considered a passenger automobile for purposes of the listed property and luxury automobile limitations) on May 1, 2016 for use in its business. The truck, with a cost basis of $24,000, has a 5-year estimated life. It also is 5-year recovery property. How much depreciation should be taken on the truck for the 2016 calendar tax year using the conventional (for financial accounting purposes) straight-line depreciation method?

a.$4,800

b.$2,400

c.$400

d.$3,200

e.None of these choices are correct.

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Sol purchased land as an investment on January 12, 2011 for $85,000. On January 31, 2016, Sol sold the land for $90,000 cash. What is the nature of the gain or loss?

a.Long-term capital loss

b.Short-term capital loss

c.Short-term capital gain

d.Long-term capital gain

e.None of these choices are correct.