Choose the Incorrect Statement Concerning the Half-Year Convention as It

question 149

Multiple Choice

Choose the incorrect statement concerning the half-year convention as it applies to amortization.

• A) It adds a year to the class life of the asset for tax purposes.
• B) It reduces the accelerated nature of the deduction.
• C) It can be used only for tax purposes.
• D) It results in an amortization rate equal to the straight-line rate based on class life in the first year of the asset's life.

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Definitions:

Obedience

The act of following orders or directions from authority figures, often studied in psychology.

Conformity

The act of matching attitudes, beliefs, and behaviors to what is considered normal or standard in one's social or cultural group.

Compliance

The act of conforming to or following rules, standards, or another's wishes, often due to pressure or regulation.

Obedience

The act of following orders or directions from others, usually those in a position of authority.