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.