21. Occasionally bonus depreciation is used as a stimulus tool by tax policy makers. True False 22. Business assets that tend to be used for both business and personal purposes are referred to as listed property. True False 23. If the business use percentage for listed property falls below 50 percent, the only adjustment is all future depreciation must be calculated under the straight-line method. True False 24. Significant limits are placed on the depreciation of luxury automobiles. True False 25. The alternative depreciation system requires both a slower method of recovery and longer recovery periods. True False 26. The method for tax amortization is always the straight-line method. True False 27. All assets subject to amortization have the same recovery period. True False 28. Goodwill and customer lists are examples of §197 amortizable assets. True False 29. Taxpayers may always expense a portion of start-up costs and organizational expenditures. True False 30. Businesses may immediately expense research and experimentation expenditures or they may elect to capitalize these costs and amortize them using the straight-line method over a period of not less than 60 months. True False 31. The manner in which a business amortizes a patent or copyright is the same whether the business directly purchases the patent or copyright or whether it self-creates the intangible. True False 32. Depletion is the method taxpayers use to recover their capital investment in natural resources. True False
21. Occasionally bonus depreciation is used as a stimulus tool by tax policy makers. True False 22. Business assets that tend to be used for both business and personal purposes are referred to as listed property. True False 23. If the business use percentage for listed property falls below 50 percent, the only adjustment is all future depreciation must be calculated under the straight-line method. True False 24. Significant limits are placed on the depreciation of luxury automobiles. True False 25. The alternative depreciation system requires both a slower method of recovery and longer recovery periods. True False 26. The method for tax amortization is always the straight-line method. True False 27. All assets subject to amortization have the same recovery period. True False 28. Goodwill and customer lists are examples of §197 amortizable assets. True False 29. Taxpayers may always expense a portion of start-up costs and organizational expenditures. True False 30. Businesses may immediately expense research and experimentation expenditures or they may elect to capitalize these costs and amortize them using the straight-line method over a period of not less than 60 months. True False 31. The manner in which a business amortizes a patent or copyright is the same whether the business directly purchases the patent or copyright or whether it self-creates the intangible. True False 32. Depletion is the method taxpayers use to recover their capital investment in natural resources. True False
Downloadable-Test-Bank-for-Taxation-of-Business-Entities-4th-Edition-Spilker-2.docx