Listed Property Rules Include the Following

question 50

Multiple Choice

Listed property rules include the following:
I.If listed property is not predominantly used in the taxpayer's business,the business-use portion of the asset cannot be depreciated.
II.If more than 50 percent of the listed property's total use for each year is related to the taxpayer's business,the asset is treated the same as any other mixed-use business asset.
III.When listed property is used 50% or less in the taxpayer's business,the Section 179 expense election does not apply to the asset.
IV.Listed property includes computers,and passenger automobiles.
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• A)Statements I and III are correct.
• B)Only statement IV is correct.
• C)Statements II and III are correct.
• D)Statements II,III,and IV are correct.
• E)Statements I,II,III,and IV are correct.

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Definitions:

Indirect Costs

Expenses not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.

Manufacturing Environment

The setting or conditions within which manufacturing processes take place, including the tools, machinery, and workforce involved.

Period Costs

Period costs are expenses that are not directly tied to the production of goods and are instead charged to the accounting period in which they are incurred, such as selling and administrative expenses.

Insurance Expense

The cost incurred by a business to secure insurance coverage against various risks, recorded as a periodic expense.