1) Which of the following types of costs that generally have no salvage value and are a lost cost if the well is dry is incurred in making a property ready for drilling? a.Amortization costs b.Natural resource costs c.Operating costs d.Intangible drilling and development costs e.Tangible asset costs

2)

The cost of a covenant not to compete for 20 years incurred in connection with the acquisition of a business is amortized over 10 years.

True

False

3)

Atalia purchased used 7-year class property at a cost of $300,000 on April 15, 2020. Atalia's cost recovery deduction for 2020 for alternative minimum tax purposes, assuming she does not elect 179, would be $32,130.

True

False

4)

Self-created goodwill has a 15-year amortization period regardless of the actual useful life of the goodwill.

True

False

5)

A taxpayer is not entitled to an immediate expensing of startup expenditures if he or she exceeds which of the following amounts?

a.$55,000

b.$50,000

c.$1,000

d.$10,000

e.$40,000