Which of the Following Statements with Respect to the Depreciation

question 13

Multiple Choice

Which of the following statements with respect to the depreciation of real property under MACRS is correct?

• A)Real property is depreciated using a mid-quarter convention.
• B)Only one-half year of depreciation is allowed in the year of acquisition of real property, regardless of the actual date the property is placed in service.
• C)Assuming the property is not disposed of during the year, the depreciation deduction for the second year of use of the real property will be greater than the depreciation deduction in the first year.
• D)In some cases, where a significant amount of property is acquired during the last quarter of the taxpayer's tax year, the taxpayer may be required to use a mid-quarter convention in calculating depreciation on real property.
• E)None of the above.

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Definitions:

Interior Support Frame

A structural element within objects or buildings that provides stability and support to the overall form.

Truthful

Corresponding to fact or reality; honest and accurate representation without deceit or falsification.

Photographs Lie

A statement reflecting the belief that photographs cannot always be trusted to represent reality accurately, as they can be manipulated or taken out of context.

Cathedral

A bishop’s church. The word derives from cathedra, referring to the bishop’s chair.