ACCOUNTING 405 COMPREHENSIVE
EXAM 2026 FULL QUESTIONS AND
CORRECT ANSWERS ALREADY PASSED
●● Real Property.
Answer: buildings and land
●● Intangible assets.
Answer: nonphysical assets
●● Natural Resources.
Answer: commodities such as oil, timber, and gold
●● Subtracted prior depreciation allowed or allowable on the asset
add costs necessary to prepare the asset for use in the business
start with the assets original basis.
Answer: Choose the items included in the calculation of an asset's
adjusted basis
subtracted prior depreciation allowed or allowable on the asset
add costs necessary to prepare the asset for use in the business
add accumulated depreciation actually taken on the asset
,start with the assets OG basis
subtract ordinary repair expenses
add additional costs for routine maintenance on the asset
●● a. 5000.
Answer: Harry inherited 100 shares of stock from his aunt upon her
death. Harry's aunt purchased the stock 10 years ago for $20 per share.
The stock was worth $50 per share on the date she died. What is the
amount of Harry's basis in the stock
a. 5000
b. 20
c. 2000
d. 50
●● False
the business also needs to know the applicable depreciation convention
(e.g half year or mid quarter) to be used as well as the date placed in
service.
Answer: True or false: in order to calculate MACRS depreciation, the
business needs to know the asset's original cots, recovery period, and
which depreciation method (i.e double declining balance) is used. No
other info is required
, ●● personal property, and personal use property.
Answer: Antoine owns a car. He uses the car for personal transportation.
Which is the applicable classifications of the car
income producing property
investment property
personal property
personal use property
business property
real property
●● d. MACRS 200% declining balance.
Answer: Which depreciation method is most likely to be used by
profitable businesses with high marginal tax rates
a. Alternative depreciation system
b. Units of activity depreciation method
c. Straight line
d. MACRS 200% declining balance
●● a. The new machinery can be depreciated using the same method or
different method than the previously purchased machinery.
Answer: Lucky started a new business last year. Since it was the first
year of operation, the business purchased $10,000 in machinery and
EXAM 2026 FULL QUESTIONS AND
CORRECT ANSWERS ALREADY PASSED
●● Real Property.
Answer: buildings and land
●● Intangible assets.
Answer: nonphysical assets
●● Natural Resources.
Answer: commodities such as oil, timber, and gold
●● Subtracted prior depreciation allowed or allowable on the asset
add costs necessary to prepare the asset for use in the business
start with the assets original basis.
Answer: Choose the items included in the calculation of an asset's
adjusted basis
subtracted prior depreciation allowed or allowable on the asset
add costs necessary to prepare the asset for use in the business
add accumulated depreciation actually taken on the asset
,start with the assets OG basis
subtract ordinary repair expenses
add additional costs for routine maintenance on the asset
●● a. 5000.
Answer: Harry inherited 100 shares of stock from his aunt upon her
death. Harry's aunt purchased the stock 10 years ago for $20 per share.
The stock was worth $50 per share on the date she died. What is the
amount of Harry's basis in the stock
a. 5000
b. 20
c. 2000
d. 50
●● False
the business also needs to know the applicable depreciation convention
(e.g half year or mid quarter) to be used as well as the date placed in
service.
Answer: True or false: in order to calculate MACRS depreciation, the
business needs to know the asset's original cots, recovery period, and
which depreciation method (i.e double declining balance) is used. No
other info is required
, ●● personal property, and personal use property.
Answer: Antoine owns a car. He uses the car for personal transportation.
Which is the applicable classifications of the car
income producing property
investment property
personal property
personal use property
business property
real property
●● d. MACRS 200% declining balance.
Answer: Which depreciation method is most likely to be used by
profitable businesses with high marginal tax rates
a. Alternative depreciation system
b. Units of activity depreciation method
c. Straight line
d. MACRS 200% declining balance
●● a. The new machinery can be depreciated using the same method or
different method than the previously purchased machinery.
Answer: Lucky started a new business last year. Since it was the first
year of operation, the business purchased $10,000 in machinery and
