Question
17. Percentage depletion enables the taxpayer to recover more than the cost of an asset in the form of tax deductions. True False 18.
17. Percentage depletion enables the taxpayer to recover more than the cost of an asset in the form of tax deductions. True False 18. Land is generally amortized, rather than being cost recovered under MACRS. True False 19. 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: 000 a. In the current year using a half-year convention. b. In the following year using a mid-quarter convention. c. In the following year using a half-year convention. d. In the current year using a mid-quarter convention. e. None of these choices are correct.
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