Under the MACRS Straight-Line Election for Personalty, Only the Half-Year

question 18

True/False

Under the MACRS straight-line election for personalty, only the half-year convention is applicable.

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Definitions:

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first ones sold; LIFO stands for Last-In, First-Out.

FIFO Method

First In, First Out, an inventory valuation method that assumes that the first items placed into inventory are the first sold.

Ending Inventory

The total value of goods that remain unsold at the end of the accounting period.

Holding Gains

Profits resulting from the increase in value of an asset held over time, not realized until the asset is sold.