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:

Taxes

Movements or orientations of an organism in response to external stimuli.

Fixed Action Patterns

Instinctive behavioral sequences that are relatively invariant within the species and are triggered by specific stimuli.

Innate

Traits, abilities, or behaviors that are inherent and present at birth, not acquired through learning.

Key Stimulus

A specific environmental cue that triggers a fixed action pattern in an animal.