Tax Book 2023

Assets and Depreciation Chapter- 10

Q.24. The application of a business asset to personal use shall be treated as ___.

(a) Acquisition of asset

(b) disposal of an asset

(c) none of the above

Q.25. The cost of an asset purchased by a person shall be_____.

(a) Total consideration given

(b) incidental expenditure in acquiring and disposing

(c) any expenditure to alter or improve the asset

(d) all of these

(e) none of the above

Q.26. Where an asset has been acquired with a foreign currency loan the cost of an asset shall be
fluctuated due to __.
(a) increase in exchange rate without payment of loan
(b) decrease in exchange rate without payment of loan
(c) No effect unless loan is repaid

Q.27. Where the person disposing of the asset under non-arm’s length transaction, the consideration shall
be treated as having received equal to ___.
(a) Actual consideration received
(b) Fair Market Value
(c) none of the above.

Q.28. Depreciation shall be computed on Building (all types) against the written down value at the beginning
of the year at the rate of ___.
(a) 10%
(b) 15%
(c) 30%
(d) 100%
(e) 20%

Q.29. Depreciation shall be computed on Furniture (Including fitting) and machinery and plant, Motor
vehicles (all types), ships, technical or professional books against the written down value at the
beginning of the year at the rate of ___.
(a) 10%
(b) 15%
(c) 30%
(d) 100%
(e) 20%

Q.30. Depreciation shall be computed on computer hardware including printer, monitor and allied items,
machinery and equipments used in manufacture of IT products, aircrafts and aero engines, Aerial
photographic apparatus against the written down value at the beginning of the year at the rate of
___.
(a) 10%
(b) 15%
(c) 30%
(d) 100%
(e) 20%