Which of the Following Statements About Amortization Deductions Is False

question 28

Multiple Choice

Which of the following statements about amortization deductions is false?

• A)Amortization deductions result in the recovery of the capitalized cost of an intangible asset.
• B)Amortization is computed ratably (on a straight-line basis)over the asset's determinable life.
• C)Amortization deductions reduce the tax basis of the amortized asset.
• D)None of the above is false.

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Definitions:

Rational Behaviors

Actions or thoughts that are consistent with logic or reasoned thinking.

Irrational Behaviors

Actions that lack reason or logical thinking, often driven by emotions rather than rational decision making.

Cognitive Theories

Theories in psychology that emphasize mental processes like perception, memory, and problem-solving as the key to understanding behavior.

Measurable Behaviors

Observable and quantifiable actions or responses that can be empirically assessed or evaluated.