Which of the Following Statements About Amortization Deductions Is False

question 59

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 these choices are false.