1) MACRS deductions are a combination of which other methods of depreciation?a) Sum-of-year s-digits and straight lineb) Sum-of-year s-digits and declining balancec) Double declining balance and 150% declining balanced) Double declining balance and straight line2) A company purchased a commercial building for $100000 and sold it 2 years later for $180000. They depreciated the building by $6000 during this time. Their gains tax rate is34%. Which of the following is the closest to the taxes they owe?a) $29200b) $34000c) $28700d) $350003) Which of the following statements is true?a) Tax rates are based on two flat-rate schedules one for individuals and one for businesses.b) When businesses subtract expenses they always include capital costs.c) For businesses taxable income is total income less depreciation and ordinary expenses.d) When quantifying depreciation allowances one must always divide first cost by the MACRS 3-year life.4) The correct calculated taxes due on a corporate taxable income of $13000000 are closest to which of the following?a) $3400000b) $4420000c) $4450000d) $4550000
