QUESTION 10

C corporations net capital gain does not receive any special tax treatment. Instead, their net capital gains are taxed at the ordinary income rate for corporations, which is 21%.

		a. True
		b. False

QUESTION 18

_________ is the order in which cost recovery techniques are considered in the year a depreciable asset is placed in service.

		a. Sec. 179, Bonus depreciation, MACRS.
		b. MACRS, Sec. 179, Bonus depreciation.
		c. Bonus depreciation, Sec. 179, MACRS.
		d. Sec. 179, MACRS, Bonus depreciation.

QUESTION 21

If more than 40% of the depreciable basis of property, other than real property, is placed in service during the last quarter, all of the personalty placed in service that year will be placed on the __________ convention.

		a. Mid-month.
		b. Mid-quarter.
		c. Half-year.
		d. Straight line.

QUESTION 22

Under MACRS General Depreciation System, the asset recovery classification for residential rental property is___________.

		a. 20 years
		b. 27.5 years.
		c. 31 years.
		d. 39 years.