Grape Corporation Purchased a Machine in December of the Current

question 48

Multiple Choice

Grape Corporation purchased a machine in December of the current year. This was the only asset purchased during the current year. The machine was placed in service in January of the following year. No assets were purchased in the following year. Grape Corporation's cost recovery would begin:

• A) In the current year using a mid-quarter convention.
• B) In the current year using a half-year convention.
• C) In the following year using a mid-quarter convention.
• D) In the following year using a half-year convention.
• E) None of the above.

---

Definitions:

Liability

Legal responsibility for one's actions or omissions, often involving the obligation to compensate for harm caused.

Possession of Coat

Refers to the act of having physical control over a coat, implying ownership or temporary custody.

Commercial Aircraft

An airplane used for transporting passengers or cargo for profit.

Transfer of Possessions

The act of moving ownership or control of property or assets from one party to another.