题目

COMM_V 370 101-108 2025W1 COMM 370-Practice Midterm-2025-W1

多重下拉选择题

Concerning salvage value when assets are sold, letting: P = purchase price S: salvage value B: residual book value, When S < P: A. If S = B [ Select ] No tax adjustments are required. There is recaptured depreciation. There is a capital loss. B. If S > B [ Select ] There is a capital loss. There is recaptured depreciation. No tax adjustments are required. C. If S < B [ Select ] No tax adjustments are required. There is recaptured depreciation. There is a terminal loss.

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思路分析

We need to examine the tax implications of selling an asset with salvage value S, original purchase price P, and remaining tax basis (book value) B, under three scenarios and pick the appropriate tax outcome statements. Case A: S < P with the option choices for A being: - No tax adjustments are required. - There is recaptured depreciation. - There is a terminal loss. First, consider what happens when salvage value is less than the purchase price. If the asset is sold for less than its adjusted basis (which is typically B if depreciation has been taken to reduce basis), there can be a loss for tax purposes. If S equals B, the sale price exactly matches the book value, so there is no gain or loss and hence no tax adjustments. If S is below B, the sale results in a loss relative to book value. Depending on tax rules, that loss is often treated as a terminal loss (an ordinary loss......Login to view full explanation

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Concerning salvage value when assets are sold, letting: P = purchase price S: salvage value B: residual book value, When S < P: A. If S = B [ Select ] No tax adjustments are required. There is recaptured depreciation. There is a capital loss. B. If S > B [ Select ] There is recaptured depreciation. There is a capital loss. No tax adjustments are required. C. If S < B [ Select ] There is recaptured depreciation. There is a terminal loss. No tax adjustments are required.

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