Dale Owns and Operates Dale's Emporium as a Sole Proprietorship

question 37

Multiple Choice

Dale owns and operates Dale's Emporium as a sole proprietorship.On January 30,1998,Dale's Emporium acquired a warehouse for $100,000.For regular income tax purposes in 2016,depreciation was deducted under MACRS using a rate of 2.564%.Determine the AMT adjustment for depreciation and indicate whether it is positive or negative.

• A)$64 negative adjustment.
• B)$64 positive adjustment.
• C)No adjustment is required because Dale's Emporium used the Alternative Depreciation System (ADS)to compute depreciation on the property for AMT purposes.
• D)No adjustment is required because Dale's Emporium used MACRS to compute the depreciation of the property for regular income tax purposes.

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Definitions:

Summative Evaluations

The assessment of the learning that confirms what has been learned at the conclusion of a specific educational period.

Program Evaluation

The systematic method for collecting, analyzing, and using information to answer questions about projects, policies, and programs, particularly about their effectiveness and efficiency.

Types

Various kinds, sorts, or forms that distinguish one set of things or behaviors from another.

Quantitative Evaluation

A method of assessment focusing on numerical measurement and statistical analysis to understand and interpret phenomena.