Discussion Question 8-6 (LO. 2) Complete the following regarding statements rega

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Discussion Question 8-6 (LO. 2) Complete the following regarding statements regarding the Mid-Quarter Convention and how the multiplying factor is applied Enter numerical values as a decimal to one decimal place, if required (i.e. 8.5) If more than 40% of the value of property, other than eligible real estate property V is placed in service during the last quarter of the year, the mid-quarter convention applies. Based on when the asset is placed in service, the first quarter is allowed is allowed fourth quarter is allowed x months of cost recovery; the second quarter X months of cost recovery; the third quarter is allowed X months of cost recovery; and, the x months of cost recovery Feedback Check My Work If more than 40% of the value of property, with some exceptions, is placed in service during this time of the year, mid-quarter convention applies.

Explanation / Answer

Based on when assets is placed in service,

the first quarter is allowed 10.5 months

the second quarter is allowed 7.5 months

Third Quarter is allowed 4.5 months

Fourth Quarter is allowed 1.5 months

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