With the Half-Year Rule, the Depreciation Percentage Is Lower in the First

question 84

Multiple Choice

With the half-year rule, the depreciation percentage is lower in the first year than in the second year.This is due to the fact that:

• A)the depreciation percentage increases in each year.
• B)assets are assumed to be acquired at mid-year.
• C)depreciation expense increases at the rate of inflation.
• D)declining balance depreciation is less attractive than straight-line depreciation.

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Definitions:

Common-Law Negligence

Refers to the failure to act with the level of care that someone of ordinary prudence would have exercised under the same circumstances, leading to unintended harm to others.

Legal Duty

Refers to an obligation imposed by law upon an individual to act or refrain from acting in a certain manner.

Proximately Caused

A legal principle that limits the damages a plaintiff can recover to those which are directly related to the defendant's actions.

Proximate Cause

A legal concept that links a defendant’s conduct with the plaintiff's injury or damage, establishing liability based on the foreseeability of the harm.