Final answer:
The given statement ''An election to use straight-line under ADS is made on an asset-by-asset basis for property other than eligible real estate.'' is False. Therefore, the correct option is b.
Step-by-step explanation:
The statement is false. An election to use straight-line under the Alternative Depreciation System (ADS) is not made on an asset-by-asset basis for property other than eligible real estate. Instead, the election to use straight-line depreciation under ADS is generally made for the entire class of property.
Under ADS, the recovery periods and methods are specified by the Internal Revenue Service (IRS) and are different from those under the Modified Accelerated Cost Recovery System (MACRS).
It is crucial for taxpayers to make informed decisions regarding the depreciation method they choose, considering the nature of their assets and tax implications. The choice between straight-line and MACRS depreciation methods can impact the timing of deductions and ultimately affect taxable income.
Therefore, the correct option is b.