Multiple Choice
Hoopin Oil Inc.was allowed to deduct $5.3 million of intangible drilling and development costs on this year's tax return.Which of the following statements is false?
A) The deduction is a tax preference for Hoopin.
B) The deduction minimizes Hoopin's after-tax cost of locating and preparing oil wells for production.
C) Hoopin was allowed to deduct the costs only because they did not result in any long-term economic benefit.
D) None of the above is false.
Correct Answer:
Verified
Correct Answer:
Verified
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