With regard to depreciation computations made under the general MACRS method, the half-year convention provides that

A. One-half of the first years depreciation is allowed in the year in which the property is placed in service, regardless of when the property is placed in service during the year, and a half-years depreciation is allowed for the year in which the property is disposed of.

B. The deduction will be based on the number of months the property was in service, so that one-half months depreciation is allowed for the month in which the property is placed in service and for the month in which it is disposed of.

C. Depreciation will be allowed in the first year of acquisition of the property only if the property is placed in service no later than June 30 for calendar-year corporations.

D. Depreciation will be allowed in the last year of the propertys economic life only if the property is disposed of after June 30 of the year of disposition for calendar-year corporations.