The primary difference between ordinary and extraordinary repairs is that extraordinary repairs
A) are an expense of the current period.
B) are periodic in nature.
C) are necessary to maintain the asset in good operational condition.
D) extend the useful life or increase the residual value of the asset.
D
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Which of the following inventory methods when used for income tax purposes must also be used for reporting purposes?
a. Specific identification b. LIFO c. FIFO d. Average-cost
Acquired in-process research and development (IPR&D) is _____ for tax purposes and results in a(n) _____ effective tax rate
a. never deductible; increased b. never deductible; decreased c. always deductible; increased d. always deductible; decreased e. deductible over a 15 year period; decreased
The day on which the board of directors of the corporation distributes a dividend is called the declaration date
Indicate whether the statement is true or false
Structures that require too much formality and long decision-making processes are often derided as:
a. bureaucracies b. monopolies c. democracies d. strings e. matrices