Question

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's cost recovery would begin: a.In the following year using a half-year convention. b.In the current year using a mid-quarter convention. c.In the following year using a mid-quarter convention. d.In the current year using a half-year convention.

Answer 1

d.In the current year using a half-year convention.

Step-by-step explanation:

Half-Year Convention (HY).