MCGRAW HILL TAXATION OF
INDIVIDUALS 16TH EDITION SPILKER
STUDY GUIDE 2026 QUESTIONS WITH
ANSWERS GRADED A+
◉ Which of the following costs should be included in the asset's original
cost basis? (Check all that apply.). Answer: Installation charges
Repairs prior to putting the asset in service
Shipping charges
Sales tax
Purchase price
◉ True or false: In order to calculate MACRS depreciation, the business
only needs to know the asset's depreciable basis, the recovery period,
and which depreciation method (i.e. 200% declining balance) is used..
Answer: false
◉ Antoine owns a car. He uses the car for personal transportation.
Which of the following classifications apply to the car? (Check all that
apply.). Answer: Personal property
Personal-use property
◉ Which depreciation method is most likely to be used by profitable
businesses with high marginal tax rates?. Answer: MACRS 200%
declining balance
INDIVIDUALS 16TH EDITION SPILKER
STUDY GUIDE 2026 QUESTIONS WITH
ANSWERS GRADED A+
◉ Which of the following costs should be included in the asset's original
cost basis? (Check all that apply.). Answer: Installation charges
Repairs prior to putting the asset in service
Shipping charges
Sales tax
Purchase price
◉ True or false: In order to calculate MACRS depreciation, the business
only needs to know the asset's depreciable basis, the recovery period,
and which depreciation method (i.e. 200% declining balance) is used..
Answer: false
◉ Antoine owns a car. He uses the car for personal transportation.
Which of the following classifications apply to the car? (Check all that
apply.). Answer: Personal property
Personal-use property
◉ Which depreciation method is most likely to be used by profitable
businesses with high marginal tax rates?. Answer: MACRS 200%
declining balance
