If Tangible Personal Property Is Depreciated Using the Half-Year Convention

question 29

True/False

If tangible personal property is depreciated using the half-year convention and is disposed of during the first quarter of a subsequent year, the taxpayer must use the mid-quarter convention for the year of disposition.

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Definitions:

Current Ratio

A financial metric that assesses a company's capacity to cover its obligations due within a year by dividing its current assets by its current liabilities.

Quick Ratio

A measure of a company's ability to meet its short-term obligations using its most liquid assets, excluding inventories.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Quick Ratio

A financial metric that measures a company’s ability to meet its short-term obligations with its most liquid assets.