The Mid-Year Convention Under MACRS Provides That

Multiple Choice

The mid-year convention under MACRS provides that

A) Depreciation is allowable in the year of acquisition of qualified property only if the property is placed in service in the first one-half of that year.
B) One half of the year-of-acquisition depreciation is allowed regardless of when the property is placed in service during the year.One-half year's depreciation is allowable for the year of disposition.
C) Depreciation is allowable in the year of disposition only if the property is disposed of in the last one-half of that year.
D) The cost recovery deduction is based on the number of months the property was in service in the year of acquisition.Therefore,one-half month's cost recovery is allowable for the month in which the property is place in service and for the month of disposition.