Final answer:
The convention used to calculate the 2022 depreciation expense for property can be mid-month, mid-quarter, half-year, or full-year, with the half-year convention being the most common. The specific convention depends on the type of property and the timing of when it was placed in service. Therefore, the correct option is C.
Step-by-step explanation:
The convention used to calculate the 2022 depreciation expense for the Green Tree property would depend on the specific circumstances under which the property was placed in service. In general, the Internal Revenue Service (IRS) provides different conventions to determine how much depreciation to take in the year an asset is placed in service:
- Mid-month convention is used for residential rental property and nonresidential real property.
- Mid-quarter convention is used if more than 40% of the total cost of personal property is placed in service during the last quarter of the tax year.
- Half-year convention is typically used if the mid-quarter convention does not apply. It assumes the asset was in service for half the year regardless of when it was actually placed in service during the tax year.
- Full-year convention is rarely used for personal property and is not an option for most business or investment property under the Modified Accelerated Cost Recovery System (MACRS).
Therefore, without specific details about the Green Tree property, such as the type of property and when it was placed in service, it is not possible to determine the exact convention. However, the most common convention for depreciating property is the half-year convention.