LO 8.2 Which of the following statements with respect to the depreciation of property under MACRS is incorrect? a. Under the half-year convention, one half of depreciation is allowed in the year the property is placed in service. b. If a taxpayer elects to use the straight line method of depreciation for property in the 5 year class, all other 5 year class property acquired during the year must also be depreciated using the straight line method. c. In some cases, when a taxpayer places a significant amount of property in service during the last quarter of the year, real property must be depreciated using a mid quarter convention. d. Real property acquired after 1986 must be depreciated using the straight line method. e. The cost of property to which the MACRS rate is applied is not reduced for estimated salvage value. c. In some cases, when a taxpayer places a significant amount of property in service during the last quarter of the year, real property must be depreciated using a mid quarter convention. a. Under the half-year convention, one half of depreciation is allowed in the year the property is placed in service. O d. Real property acquired after 1986 must be depreciated using the straight line method. e. The cost of property to which the MACRS rate is applied is not reduced for estimated salvage value. b. If a taxpayer elects to use the straight line method of depreciation for property in the 5 year class, all other 5 year class property acquired during the year must also be depreciated using the straight line method. LO 8.2 Which of the following statements with respect to the depreciation of property under MACRS is incorrect? a. Under the half-year convention, one half of depreciation is allowed in the year the property is placed in service. b. If a taxpayer elects to use the straight line method of depreciation for property in the 5 year class, all other 5 year class property acquired during the year must also be depreciated using the straight line method. c. In some cases, when a taxpayer places a significant amount of property in service during the last quarter of the year, real property must be depreciated using a mid quarter convention. d. Real property acquired after 1986 must be depreciated using the straight line method. e. The cost of property to which the MACRS rate is applied is not reduced for estimated salvage value. c. In some cases, when a taxpayer places a significant amount of property in service during the last quarter of the year, real property must be depreciated using a mid quarter convention. a. Under the half-year convention, one half of depreciation is allowed in the year the property is placed in service. O d. Real property acquired after 1986 must be depreciated using the straight line method. e. The cost of property to which the MACRS rate is applied is not reduced for estimated salvage value. b. If a taxpayer elects to use the straight line method of depreciation for property in the 5 year class, all other 5 year class property acquired during the year must also be depreciated using the straight line method
